Investment Promotion Guide 2023 by Thailand Board of Investment (BOI)

Contents

Overview Policies and Criteria

Organization Chart of office ofthe Board of Investment

Five-Year Investment Promotion Strategy (2023- 2028)

Investment Promotion Criteria

Incentives Under the Investment Promotion Act

Investment Incentives Scheme

Additional Incentives

Measures for Competitiveness Enhancement

- Eligible Investment/Expenditures for the computation:

Measure to Support Establishment of Institutes for Highly Skilled Professional Development

Additional Incentives for Area-based Promotion

- BOI-promoted industrial estates or zones

- 20 Areas with low per capital incomes

- Science and Technology Zone

Group of Industries and General List of Activities Eligible for Investment Promotion

BCG Industries

Advanced Manufacturing Industries Basic and Supporting Industries Digital, Creative Industries and High Value Service

Procedures of Applyingfor BOI Promotion

Special Measures

Investment Promotion Measure in Special Border Economic Zones (SEZ)

Investment Promotion Measures in the Eastern Special Development Zone (Eastern Economic Corridor: EEC)

Investment Promotion Measure in the Economic Corridor (NEC, NeEC, CWEC, SEC)

Measure for Industrial Upgrades towards Smart and Sustainable Industry

Investment Promotion Measures for Community and Society Development

Investment Promotion Measure in the Southern Border Provinces and Investment

Promotion Measure in Model City Project in the Southern Border Provinces

Practice after being Investment Promotion

Preface

The Guide to the Board of Investment was prepared by the Office of the Board of Investment to provide information regarding investment promotion, including benefits and privileges, list of eligible activities, related announcements and, also, investment promotion application’s criteria and conditions. For the most recent updates and amendments of the list of promoted activities, please scan:

For additional information, you can also contact us via email: head@boi.go.th, call: 0 2553 8111

LINE Official: @boinews Facebook: www.facebook.com/boinews

The Office of the Board of Investment

January 2023

Overview Policies and Criteria

The Office of the Board of Investment is a government agency under the Office of the Prime Minister. Its main roles and responsibilities are to promote direct investment. The Board of Investment prescribes the investment promotion policies under Investment Promotion Act No. 2 B.E. 2534, No. 3 B.E. 2544, and No. 4 B.E. 2560.

Organization Chart of office of the Board of Investment

Office of the Prime Minister

Office of the Board of Investment

Office of the Secretary General

Foreign Investment Marketing Division

Competitiveness Enhancement Division

Expatriate Services Division

Investment Services Division

One Start One Stop Investment Center (OSOS)

Regional Investment and Economic Center 1-7

• Chaing Mai

• Nakhon Ratchasima

• Khon Kaen

• Tokyo

• Osaka

• Seoul

• Beijing

• Chon Buri

• Songkhla

• Surat Thani

• Phitsanulok

Overseas Offices

• Sydney

• Frankfurt

• Paris

• New York

• Guangzhou

• Shanghai

• Stockholm

• Taipei

• Los Angeles

• Mumbai

• Jakarta

• Hanoi

Policy

Board of Investment / The Commission on the National Competitiveness Enhancement for Targeted Industries Policies

Information Technology Center

International Affairs Division

Information Technology Center

Thai Enterprise Development Division

Investment Promotion Division

• Investment Promotion Division 1

Agricultural Food Biotechnology and Medical Industries

• Investment Promotion Division 2

Advanced Manufacturing Industries

• Investment Promotion Division 3

Basic and Supporting Industries

• Investment Promotion Division 4

Digital, Creative Industries and High Value Services

Investment Monitoring Division

• Investment Monitoring Division 1

- Agricultural Food Biotechnology and Medical Industries

- Advanced Manufacturing Industries

• Investment Monitoring Division 2

- Basic and Supporting Industries

- Digital, Creative Industries, and High Value Services

Scope of work of The Investment Promotion Division 1-4 and The Investment Monitoring Division 1-2

Project Evaluation

Works regarding project evaluation including:

• Applying projects for BOI promotion

• Amending promoted projects (except from the stage of auditing the operation of projects)

• Protecting promoted projects

• Extending period for the Machinery Importation Period (4th) onwards

- Extending period for the Operation Start-up (2nd) onwards

Promotion Privileges Utilization

Works regarding the utilizing of incentives

- Machinery

- Raw and Essential Materials

- Land

Works regarding Monitoring and Evaluation

- Following up under e-Monitoring System and Performance report

Works

regarding Auditing

- Supervising Project Conditions about Operation Start-up, ISO, Merits, etc.

- Extending of Operation Start-up

- Utilizing of Corporate Income Tax Exemption

- Cancellation or Partial Withdrawal of Rights and Benefits

Investment Monitoring Division 1

To consider the utilization of corporate income tax exemption, monitoring the progress and auditing the operation start-up (including the project amending on this stage) of the promoted projects supervised by Investment Promotion Division 1 and 2

Investment Monitoring Division 2

To consider the utilization of corporate income tax exemption, monitoring the progress and auditing the operation start-up (including the project amending on this stage) of the promoted projects supervised by Investment Promotion Division 3 and 4

Division Providing Advisory Services

Thai

Five-Year Investment Promotion Strategy (2023- 2028)

According to the Announcement of the Board of Investment No.8/2565 Policies and Criteria for Investment Promotion announced on December 8, 2022 which is enforced on BOI applications submitted from January 3, 2023, onward:

Innovative

Being an economy that is driven by technology, innovation and creativity.

Vision

“ Promotion of Investment to restructure Thailand’s economy into new economy” with the main objectives of restructuring Thailand’s economy to achieve 3 aspects consisting of:

Competitive

Being an economy that is competitive, adaptive and generate high growth.

Inclusive

Being an economy that values environmental and social sustainability, creates opportunity and reduces inequality.

Investment Promotion Criteria

1. In order to develop competitiveness in the agricultural, industrial and service sectors, projects submitted for BOI promotion must have the following qualifications:

1.1 The value-added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have value-added of at least 10% of revenues.

1.2 Modern production processes or servicing procedure must be used and in accordance with the Board’s approval.

1.3 New machinery must be used. In case of imported used machinery, criteria are as follows:

1 General Case Type of Machinery Allowed to be used in the project

New machinery

Used machinery not exceeding 5 years. (from manufacturing year to import year)

Used machinery exceeding 5 years but not exceeding 10 years

2 Factory Relocation Case Type of Machinery Allowed to be used in the project

New machinery

Used machinery not exceeding 5 years

Used machinery exceeding 5 years but not exceeding 10 years

Used machinery exceeding 10 years

3 Other Cases Type of Machinery Allowed to be used in the project

Sea and Air Transport Services* Mold and Dies

Counted as investment capital for calculation of CIT exemption cap (If Section 31 is granted)

Import Duty Exemption Conditions

The machinery performance certificate must be submitted on the same date in which the master list of machinery is submitted

Counted as investment capital for calculation of CIT exemption cap (If Section 31 is granted)

Import Duty Exemption Conditions

(Investment cap shall be based on 50% of the machinery value from the list of machinery)

The machinery performance certificate must be submitted on the same date in which the BOI application and master list of machinery are submitted

Counted as investment capital for calculation of CIT exemption cap (If Section 31 is granted)

Import Duty Exemption Conditions

Remarks

- Relocation of factory refers to the relocation of the production line either partially or in its entirely from a foreign country where the machinery to be used in the project belongs to affiliates or related companies.

- Machinery Performance Certificate refers to a certificate issued by a trusted institute that grants a machinery performance certificate, which includes a certified report on reconditioned machinery together with detailed documentation of the reconditioning. The inspection of certified machinery and equipment shall include a full test run of the machinery to evaluate its capacity and functionality, as prescribed by requirements of the testing procedure. An environmental impact report, a safety standards check and an energy consumption report must be compiled in accordance with the acceptable criteria. A certified report must identify 6 significant details, as follows:

1) Details on reconditioning and an analysis of the remaining lifecycle of the machinery;

2) Year of manufacture;

3) Test-run results;

4) An environmental impact report, safety standards check and an energy consumption report;

5) Appropriate price estimation (the price estimation certificate can be submitted separately);

6) Inspection report with date and place of inspection.

Note: * Planes in the Air Transportation Services project must be no more than 14 years old. (Please see condition under activity)

2. Projects that have investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 certification or similar international standard certification within 2 years from the full operation startup date, otherwise corporate income tax exemption shall be reduced by one year.

3. Environmental protection

3.1 Adequate and efficient guidelines and measures to protect environmental quality and to reduce environmental impact must be installed. The Board will give special consideration to the location and pollution treatment of a project with potential environmental impact.

3.2 Projects or activities with type and size that are required to submit environmental impact assessment reports must comply with the related environmental laws and regulations or Cabinet resolutions.

3.3 Projects located in Rayong must comply with the Office of the Board of Investment Announcement No. Por 1/2554 dated May 2, 2011 on Industrial Promotion Policy in Rayong Area.

4. Minimum capital investment and project feasibility

4.1 The minimum capital investment requirement of each project is 1 million baht (excluding cost of land and working capital) unless specified otherwise on the list of activities eligible for investment promotion that is announced by the Board.

As for knowledge-based activities, the minimum capital investment requirement is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion that is announced by the Board.

4.2 For newly established projects, the debt-to-equity ratio must not exceed 3 to 1. Expansion projects shall be considered on a case-by case basis.

4.3 For projects with investment value of over 2,000 million baht (excluding cost of land and working capital), the project’s feasibility study must be submitted with details as specified by the Board.

Criteria for concession project

For a concession project and the privatization of a state enterprise project, the Board’s criteria shall be based on the Cabinet’s decisions dated May 25, 1998, and November 30, 2004, as follows:

1. An investment project of state enterprise according to the 1999 State Enterprise Corporatization Act shall not be entitled to investment promotion.

2. For Build-Transfer-Operate or Build-Operate-Transfer projects, the state agency that owns the project must submit its project to the Board for consideration prior to any invitation to bid, and bidders shall be informed of any promotional privilege entitled to them, prior to the bidding. In principle, the Board will not promote a project where the private sector pays the state for a concession, unless such payment is deemed reasonable in comparison with what the state has invested in the project.

The projects that require the Board’s approval in principle must comply with the guidelines prescribed by the Office and the following conditions:

(1) Being concessionary projects operated by a private party whose ownership will be transferred to the State (Build Transfer Operate or Build Operate Transfer) ;

(2) Having a private party selected through a bidding process, And

(3) Being infrastructure and public service-related activities in the list of activities eligible for investment promotion.

In the case that the applicant fails to comply with any of the specified conditions, the Board will consider granting investment promotion on general criteria without requiring approval in principle before the application submission.

3. For Build-Own-Operate projects, including those leased to or managed by the private sector, which in return pays rent to the state, the Board shall use normal criteria for investment promotion.

4. For the privatization of state enterprises according to the 1999 State Enterprise Corporatization Act, in case of expansion after the privatization, only the expansion investment shall be eligible for promotion. Incentives shall be granted according to normal criteria for investment promotion.

Criteria for foreign shareholding

The Board stipulates the following criteria for foreign shareholding in projects that apply for investment promotion:

1. For projects in activities under List One annexed to the Foreign Business Act, B.E. 2542, Thai nationals must hold shares totaling not less than 51% of the registered capital.

2. For projects in activities under List Two and List Three annexed to the Foreign Business Act, B.E. 2542, there are no equity restrictions for foreign investors except as otherwise specified in other laws.

3. The Board may set foreign shareholding limits for certain activities eligible for investment promotion as deemed appropriate.

Incentives Under the Investment Promotion Act

In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted:

Incentive

Tax Incentives

• Exemption/reduction of import duties on machinery (Section 28/29)

• Reduction of import duties for raw or essential materials (Section 30)

• Exemption of import duties on materials imported for R&D purposes (Section 30/1)

• Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31, 31/1 and 34)

• A 50 percent reduction of the corporate income tax (Section 35(1))

• Double deduction from the costs of transportation, electricity and water supply (Section 35 (2))

• Additional 25 percent deduction of the cost of installation or construction of facilities (Section 35(3))

• Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)

Non-tax Incentives

• Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities. (Section 24)

• Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities (Section 25 and 26)

• Permit to own land (Section 27)

• Permit to take out or remit money abroad in foreign currency (Section 37)

Additional Incentives

Investment Incentives Scheme

Basic Incentives

Extension of CIT Exemption to a Maximum Period of 13 years.

Competitiveness Enhancing Incentive

1) Technology and Innovation

• Research and Development (R&D)

• Licensing fees for using domestically developed technology

• Product and package design

• Support for S&T organizations such as academic institutions, specialized training centers, research institutes, and public agencies, including various funding such as technology and innovation, personnel development as approved by the BOI

2) Human Resource Development

• Advanced technology training

• Organizing training or accepting student internships for work training and skill development during their science and technology education

BCG Industries

• Agriculture, Food, and Biotechnology

• Medical

Basic and Supporting Industries

• Metals and Materials

• Chemicals and Petrochemicals

• Public Utilities

3) Development of Business Operators’ Potentials

• Local supplier development

(More details on page 17 - 19)

Area-based Incentives

• 20 provinces with lowest income (More details on page 26 - 27)

• BOI-promoted industrial estates or zones (More details on page 24 - 25)

• Science and Technology Parks (TSP, Food Innopolis, Space Krenovation park) (More details on page 28 - 29)

• The Eastern Special Development Zone (Eastern Economic Corridor : EEC) (More details on page 146 - 149)

Industries Utilizing Advanced Technology

• Machinery and Vehicles

• Electrical and Electronics

Digital, Creative Industries, and High Value Service

• Digital

• Creative Industries

• High-Value Services

Details of basic Incentives of each activities Eligible on page 32-136

• Special Economic Zones in 4 Regions (NEC, NeEC, CWEC, SEC) (More details on page 150 - 153)

• Special Economic Zones (SEZ) (More details on page 142 - 145)

• Southern Border Area (More details on page 170 - 175)

Agenda - based Incentives

• Smart and Sustainable Industrial Upgrade Programs (More details on page 154 - 166)

• Social and Local Development Investment Programs (More details on page 167 - 169)

Basic Incentives

* Non-tax incentives : Permit to own land, Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities, Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities, Permit to take out or remit money abroad in foreign currency (More details on page 11).

Additional Incentives

2.1 Measures for Competitiveness Enhancement

Eligible Investment/Expenditures for the computation:

1. Technology and Innovation

• Research and Development (R&D)*

• Licensing fees for using domestically developed technology

• Product and package design

• Support for Science and Technology organizations such as academic institutions, specialized training centers, research institutes, and public agencies, including various funding such as technology and innovation, personnel development as approved by the BOI

2. Human Resource Development

• Advanced technology training

• Organizing training or accepting student internships for work training and skill development during their Science and Technology education

3. Development of Business Operators’ Potentials

• Local supplier development

Additional Incentives

Investments/Expenditures to Sales in the First 3 years

Additional CIT Exemption Limit 200% Investments/ Expenditures

≥ 1% / ≥ 200 MB

≥ 2% / ≥ 400 MB ≥ 3% / ≥ 600 MB ≥ 4% / ≥ 800 MB ≥ 5% / ≥ 1,000 MB

Additional Periods for CIT

Exemption

(1) The investments in or expenditures on R&D account for at least 1% of total sales in the first three years or at least 200 million baht, whichever is lower, the project will be eligible for corporate income tax exemption without a cap, with an additional period for corporate income tax exemption up to a maximum of 13 years in total.

* Additional corporate income tax exemption periods must not exceed 8 years in total, except for activities in groups A1+ A1 and A2, which are eligible for additional corporate income tax exemption periods of up to a maximum of 13 years in total.

2.2 Measure to Support Establishment of Institutes for Highly Skilled Professional Development

Investment Definitions

Existing Projects:

• Existing projects refer to projects that are currently operational, regardless of whether they are BOI-promoted or not. The existing projects must be operating in eligible activities and meet the investment promotion criteria which are effective at the time of application submission, except for the following activities:

10.1.2 International Business Center (IBC)

10.7.1 Vocational Training Center

10.7.2 Highly potential Academies or Institutes for Higher Education

• Current BOI-promoted projects may apply for investment promotion under this measure only when their corporate income tax incentives have expired, or if they were previously promoted without exemption from corporate income tax. The applicants must be operating in eligible activities for BOI promotion at the time the application is submitted, except for the specified activities that are ineligible to apply under this measure.

New Projects: New projects refer to new investment projects that apply for investment promotion in the categories of vocational training centers and/or educational institutes prescribed by the BOI. The projects must be operated by either existing juristic persons or new juristic persons that are wholly owned by the same shareholder group as the existing projects.

Conditions:

1. The investment must be in new projects for the establishment of educational or training institutes focused on developing highly skilled professionals in Science, Technology, Engineering, and Mathematics (STEM) with a minimum capital of 1 million baht (excluding the cost of land and working capital).

2. Existing projects are eligible to apply for investment promotion after completing investment in new projects that are ready to start operations.

3. Along with an application for investment promotion for a new project, the applicant must submit a letter confirming acceptance of rights to incentives for the existing project.

Incentives:

Existing Projects:

• Corporate income tax exemption for a period of five years, with a cap of 100 percent of the capital investment in new projects (excluding the cost of land and working capital) for the establishment of educational or training institutes.

• Other non-tax incentives.

New Projects:

• Exemption from import duty on machinery.

• Other non-tax incentives.

CIT Exemption for 5 years covering 100% of the investment in the establishment of the institutes

Parent Company

Investments > 1 million baht In Advanced Skill Personnel Development Institutes

Promote private enterprises to establish academic/training institutes for advanced technology by providing incentives to their parent company.

BAcademic/ Training Institutes

Exemption from Import Duty on Machinery/ other Non-tax incentives

Related Announcement

1. Announcement of the Board of Investment No.11/2565: Measure to Support the Establishment of the Institute for Highly-skilled Professional Development date December 8, 2022.

2. Announcement of the Office of the Board of Investment No. Por. 4/2565: Activities Not Eligible for Rights and Benefits According to the Announcement of the Board of Investment Announcement No. 11/2565, 12/2565, 13/2565, 14/2565, 15/2565 and 17/2565 date December 16, 2022.

3. Relevant explanations from the office of the Board of Investment

2.3 Additional Incentives for Area-based Promotion

Map of Thailand

20 Provinces with lowest per capita income

1) Kalasin 2) Chaiyaphum 3) Nakhon Phanom 4) Nan 5) Bueng

Kan 6) Buri Ram 7) Phatthalung 8) Phrae 9) Maha Sarakham

10) Mukdahan 11) Mae Hong Son 12) Yasothon 13) Roi Et

14) Si Sa Ket 15) Sakhon Nakhon 16) Sa Kaeo 17) Surin 18) Nong

Bua Lamphu 19) Ubon Ratchatani and 20) Amnatcharoen

Promoted Industrial Estate / Zone

Projects located within industrial estates or promoted industrial zones shall be granted one additional year of corporate income tax exemption.

Special Economic Zones in 4 Regions (NEC, NeEC, CWEC, SEC)

covering 16 provinces: Chiang Rai, Chiang Mai, Lamphun, Lampang, Khon Kaen, Udon Thani, Nakhon Ratchasima, Nong Khai, Ayutthaya, Nakhon Pathom, Suphan Buri, Kanchanaburi, Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat.

Special Economic Zones

90 sub-districts in 23 districts of 10 provinces which are Chiang Rai, Nakhon Panom, Tak, Kanjanaburi, Nongkhai, Mukdahan, Sa Ka ew, Trad, Songklah and Narathiwas

Promoted Border Provinces in Southern Thailand

Southern Border Provinces include Narathiwat, Pattani, Yala, Satun and four districts in Songkhla (Jana district, Natawee district, Saba Yoi district and Taypa district)

Model City Project in the Southern Border Provinces

Nong Chik District, Pattani

Betong District, Yala

Jana District, Songkhla

Su-ngai Kolok District, Narathiwat

BOI-promoted industrial estates or zones

Projects located within promoted industrial estates or industrial zones (see map on page 22) shall be granted one additional year of corporate income tax exemption.

Remark: Promoted activities that have a condition that must be located within industrial estates or promoted industrial zones shall be excluded.

20 Areas with low per capital incomes

Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng Kan, Buri Ram, Phatthalung, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaeo, Surin, Nong Bua Lamphu, Ubon Ratchatani and Amnatcharoen

Projects located in 20 Areas with low per capital incomes shall receive Three additional years of corporate income tax exemption shall be granted. Projects with activities in Group A1 or A2 shall instead receive a 50% reduction of corporate income tax on net profit derived from promoted activity for 5 years after the corporate income tax exemption period expires.

Science and Technology Zone

Science and Technology Zone

21 Locations

Science and Technology Park (Pathum Thani, Chiang Mai, Konkaen, Songkla)

Food Innopolis (13 Locations)

Space Krenovation Park by GISTDA

EECi

Thailand Institute of Scientific and Technological Research (TISTR)

Asia Institute of Technology (AIT)

Eligible Activities

Target Core Technology Development Activities

• Biotechnology Development

• Nanotechnology Development

• Advanced Material Technology Development

Other Target Activities

• Electronics Design

• Research and Development

• Biotechnology

• Engineering Design

• Scientific Laboratory

• Calibration Services

• Vocational Training Centers

Incentive

CIT Exemption

2 Years

In addition to the basic incentives

Corporate income tax reduction

Time period

5 Years 50%

In addition to the basic incentives

Additional Target Activities in Food Innopolis

- Plant or Animal Breeding (Those not classified as biotechnology activities)

- Creative Product Design and Development Centers

Related Announcement

1. Announcement of the Board of Investment No.22/2565: Investment Promotion

More details of Science and Technology Zone please see

Measure in Areas as Science and Technology Parks date December 8, 2022.

2. Relevant explanations from the office of the Board of Investment

Group of Industries and General List of Activities Eligible for Investment Promotion

Page 41

1

BCG Industries

Investment Promotion Division 1

Agricultural and Food Industries

1.1 Upstream agriculture; Economic forest plantation and Energy crops plantation, Animal propagation or animal husbandry, Deep sea fishery

1.2 Processed agricultural products; Starch made from plants, Oil or fat from plants or animals, Tanneries or leather finishing, Natural rubber products, Preservation of food, beverages, food additives, food ingredients or dietary supplement products, Future food, Animal feed or animal food ingredients fuel or pharmaceutical grade alcohol from agricultural products, including agricultural scrap or waste, Natural extracts or products from natural extracts

1.3 Modern agriculture; Plant or animal breeding, Manufacture or service of machinery and equipment of modern agricultural and modern agricultural system, Plant Factory

1.4 Supporting agricultural industry; Fertilizers, Crop drying and silo facilities, Grading and storage of agricultural products, Cold storage, or cold storage and cold storage transportation, Trading center for agricultural goods

Biotechnology Industry

1.5 Manufacture of biotechnology-derived products; Bioplastic, Biochemicals Biotechnology

1.6 Biotechnology development

Page 43

Medical Industry

2.1 Manufacture of medical products; Non-woven fabric or hygienic products from non-woven fabric, Medical devices, Active pharmaceutical ingredients, Medicines

2.2 Medical and health care services; Specialty medical center; Health care services

2.3 Clinical Research

For more information regarding new and amended promoted activities, please scan:

BCG Industries Investment Promotion Division 1 Section 1 Agricultural, Food and Biotechnology Industries

Activities

Agricultural and Food Industries

1.1 Upstream agriculture

1.1.1 Economic forest plantation and Energy crops plantation

1.1.1.1 Economic forest plantation

Conditions

1. Total plantation area in close proximity must not be less than 50 rai.

2. Project must be certified by Royal Forest Department or other agencies designated by the Royal Forest Department. The certification must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

3. Project must be certified by international forestry standard, such as Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) or an equivalent international standard. The certification must be completed before the full operation deadline.

1. Total plantation area in close proximity must not be less than 50 rai.

2. Project must be certified by international forestry standard, such as Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) or an equivalent international standard. The certification must be completed before the full operation deadline..

Incentives

1.1.2

1. Project must have propagation process.

2. Project must use modern technology such as closed house system, evaporative cooling system, automatic watering and feeding system, vector control measure and system, effective environmental protection, and impact reduction system.

1.1.1.2 Energy crops plantation

Animal propagation or animal husbandry

1.1.4

Activities

1.2.1.1

1.2.1.2

Conditions

3. Project must have traceability system as approved by the Board.

4. Project must be certified by animal husbandry standard such as Good Agricultural Practice (GAP) or an equivalent international standard. The certification must be completed before the full operation deadline.

1. Project must use modern technology such as stunning method, shackle, cold storage, chilling system, meat quality and contaminant inspection.

2. Project must have traceability system as approved by the Board.

3. Project must be certified by animal slaughtering standard such as Good Manufacturing Practice (GMP) or an equivalent international standard. The certification must be completed before the full operation deadline.

Project must obtain oversea fishing license by Department of Fisheries. License must be obtained before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Incentives

Project must be certified by international organic agriculture standard, such as International Federation of Organic Agriculture Movements (IFOAM), Canada Organic Regime (COR), The National Organic Program (NOP) or an equivalent international standard. The certification must be completed before the full operation deadline.

1.1.3 Slaughtering

Deep sea fishery

1.2 Processed agricultural

1.2.1 Manufacture of starch made from plants

Manufacture of organic starch or organic flour

Manufacture of modified starch or starch made from plants that have special properties

1.2.3

Activities

1.2.1.3 Manufacture of native starch or native flour

Conditions Incentives

1. Project must employ environmentally-friendly technology such as reusing water or air pollution control.

2. Project must be certified by international environmental standard such as ISO 14000 or an equivalent international standard. The certification must be completed before the full operation deadline.

1. Project must employ environmentally-friendly technology such as reducing the use of chemicals, or use of enzyme or biological catalysts to replace chemicals.

2. Tanneries must be located in industrial estate or promoted industrial zones, or the leather tanning industrial zone that have waste treatment and environmental protection and control systems according to section 30 of the announcement of the Ministry of Industry. In case of expansion project or project apply for Smart and Sustainable Industry Measure shall be allowed to locate at current location and project must have measures to reduce environmental impact.

1.2.4

1.2.4.1

of natural rubber products

1. Manufacture of rubber band, rubber balloons and rubber ring shall not be promoted.

2. Products must contain natural products at least 51 percent by weight of raw material..

1.2.4.2

1.2.5 Manufacture or preservation of food, beverages, food additives, food ingredients or dietary supplement products using modern technology

Manufacture of sugar, sport drinks, diluted juices, energy drinks, alcoholic beverages, drinking water, flavored and non-flavored soda, carbonated beverages, vitamin water and flavoring drinking water shall not be promoted.

1.2.2 Manufacture of oil or fat from plants or animals

Tanneries or leather finishing

Manufacture of natural rubber products

Manufacture

Manufacture of primary processed rubber

Activities

1.2.6 Manufacture of future food

1.2.6.1 Manufacture of food with health claims

Conditions Incentives

1. Manufacture of sugar, sport drinks, diluted juices, energy drinks, alcoholic beverages, drinking water, flavored and non-flavored soda, carbonated beverages, vitamin water and flavoring drinking water shall not be promoted.

2. Products must be qualified health claim assessment by The Food and Drug Administration or other agencies with internationally accepted standard. The qualification must be completed before the full operation deadline..

1.2.6.2 Manufacture of novel food

1. Manufacture of sugar, sport drinks, diluted juices, energy drinks, alcoholic beverages, drinking water, flavored and non-flavored soda, carbonated beverages, vitamin water and flavoring drinking water shall not be promoted.

2. Products must be registered as “novel food” with The Food and Drug Administration or other agencies with internationally accepted standard. The registration must be completed before the full operation deadline.

1.2.6.3 Manufacture of organic food

1. Manufacture of sugar, sport drinks, diluted juices, energy drinks, alcoholic beverages, drinking water, flavored and non-flavored soda, carbonated beverages, vitamin water and flavoring drinking water shall not be promoted.

2. Project must be certified by international organic agriculture standard, such as International Federation of Organic Agriculture Movements (IFOAM), Canada Organic Regime (COR), The National Organic Program (NOP) or an equivalent international standard. The certification must be completed before the full operation deadline.

1.2.6.4 Manufacture of medical food

1. Manufacture of sugar, sport drinks, diluted juices, energy drinks, alcoholic beverages, drinking water, flavored and non-flavored soda, carbonated beverages, vitamin water and flavoring drinking water shall not be promoted.

Activities

1.2.7 Manufacture of sugar

1.2.8 Manufacture of animal feed or animal food ingredients food ingredients

1.2.8.1

Manufacture of therapeutic

Conditions

2. Products must be registered as “medical food” with the Food and Drug Administration or other agencies with internationally accepted standard within the full operation start-up date. The registration must be completed before the full operation deadline.

1. Project must first obtain the Cane and Sugar Board's approval for the sugar cane quantity preparation plan for factory delivery, before applying for investment promotion.

2. Project must be certified by international environmental standard such as ISO 14000 or an equivalent international standard. The certification must be completed before the full operation deadline.

3. The limit for corporate income tax exemption will be calculated based on machinery investment subject to the conditions prescribed under the Smart and Sustainable Industry Measure including Machinery Upgrade and Replacement, Automation Adoption, Alternative Energy Utilization, Environmental Impact Mitigation, and Industry 4.0 Transformation, as approved by the Board.

4. New investment and expansion projects are not eligible to apply for additional corporate income tax incentives under other measures.

Incentives

1. Products must obtain registration on specifically controlled animal feed for pet food (therapeutic pet food) or an equivalent international standard. The registration must be completed before the full operation deadline.

2. Project must be certified by food safety management system standard, such as ISO 22000 or other standards accepted by Global Food Safety Initiative (GFSI). The certification must be completed before the full operation deadline.

pet food

1.2.9

1.2.8.2 Manufacture of animal feed or animal food ingredients certified by food safety management system standard

1.2.8.3 Manufacture of animal feed or animal food ingredient certified by global standard

1.2.8.4 Manufacture of animal feed or animal food ingredients

of products or packaging from agricultural products, by-products or agricultural waste or products from raw materials gained from by-products or agricultural waste

1.2.10 Manufacture of fuel or pharmaceutical grade alcohol from agricultural products, including agricultural scrap or waste

1.2.10.1 Manufacture of fuel or pharmaceutical grade alcohol from agricultural products

1.2.10.2 Manufacture of fuel from agricultural scrap or waste

1.2.10.3

of biomass briquettes and pellets

1.2.11 Manufacture of natural extracts or products from natural extracts

1.2.11.1 Manufacture of natural extracts or products from natural extracts using modern extraction methods derived from the continuous process within the same project

Project must be certified by food safety management system standard, such as ISO 22000 or other standards accepted by Global Food Safety Initiative (GFSI). The certification must be completed before the full operation deadline.

Project must be certified by international standards, such as HACCP and GMP. The ce rtification must be completed before the full operation deadline.

Project must manufacture fuel from agricultural scrap or waste, such as Biomass to Liquid (BTL), biogas from wastewater or biodiesel from used cooking oil.

In manufacturing products from natural extracts derived from the continual process within the same project, the products must be registered as herbal products or equivalents with the Food and Drug Administration or other relevant agencies according to the law on herbal products. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Manufacture

Manufacture

Activities

1.2.11.2 Manufacture of natural extracts or products from natural extracts derived from the continual process within the same project

In manufacturing products from natural extracts derived from the continual process within the same project, the products must be registered as herbal products or equivalents with the Food and Drug Administration or other relevant agencies according to the law on herbal products. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

1.2.11.3 Manufacture of products from natural extracts without extraction process of natural raw materials

1. Products must be registered as herbal products or equivalents with the Food and Drug Administration or other relevant agencies according to the law on herbal products. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

2. Project must be certified by international standard such as Good Manufacturing Practice (GMP) or an equivalent international standard. The certification must be completed before the full operation deadline.

1.3 Modern agriculture

1.3.1 Plant or animal breeding (only those that are not eligible for biotechnology activity)

1.3.2 Manufacture or service of machinery and equipment of modern agricultural and modern agricultural system

1.3.2.1

For breeding of sensitive plants according to the policy of the Ministry of Agriculture and Cooperatives, project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

Manufacture or

service of machinery and equipment of modern agricultural and modern agricultural system with own system or platform design and manufacture machinery and equipment in the project

1. Project must manufacture modern agricultural systems, such as detection system, tracking system or relevant resources (water, fertilizers, medicines) management systems and smart greenhouse systems.

2. Project must design its own systems or software or platform for relevant resources management in a system integration manner by collecting, interpreting, and analyzing data. In case project

1.3.2.2 Manufacture or service of machinery and equipment of modern agricultural and modern agricultural system with own system or platform design

Conditions Incentives

does not design its own systems or software or platform, project must have expenses on systems or software or platform development by local developer of at least 10 million baht within the full operation deadline.

3. The project must manufacture machinery or equipment for modern agricultural systems with a part-forming process, part-assembling process and/or engineering designs as approved by the Board.

4. Project must have expenses on salary for IT development and engineering personnel of at least 1,5000,000 baht per year and it must be new employment, or capital investment (excluding cost of land, working capital and vehicle) of at least 1 million baht.

1. Project must manufacture modern agricultural systems, such as detection system, tracking system or relevant resources (water, fertilizers, medicines) management systems and smart greenhouse systems.

2. Project must design its own systems or software or platform for relevant resources management in a system integration manner by collecting, interpreting, and analyzing data. In case project does not design its own systems or software or platform, project must have expenses on systems or software or platform development by local developer of at least 10 million baht within the full operation deadline.

3. Project must procure machinery and equipment from other business operators or employ other operators to manufacture them for subsequent system integration into a modern agricultural system.

4. Project must have expenses on salary for IT development and engineering personnel of at least 1,5000,000 baht per year and it must be new employment, or capital investment (excluding cost of land, working capital and vehicle) of at least 1 million baht.

1.3.2.3 Services related to modern agriculture

The activity must involve the provision of services for modern agricultural systems, such as detection system, tracking system, or relevant resources (water, fertilizers, medicines) management system and smart greenhouse systems as approved by the Board.

1.3.3 Plant Factory Project must grow plants inside the buildings specifically designed in a closed system with environment control system for planting both physical environment and biological environment as approved by the Board.

1.4 Supporting agricultural industry

1.4.1 Manufacture of biological fertilizers, organic fertilizers, nano-coated organo chemical fertilizers and bio-pesticides

1. Biological fertilizers, organic fertilizers and nano-coated organo chemical fertilizers must be registered and obtained license for manufacturing fertilizer for trade from the Department of Agriculture. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

2. Bio-pesticides must be registered and obtained certificate of permission to produce hazardous substance (class 2) from the Department of Agriculture. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

1.4.2 Crop drying and silo facilities

1.4.3 Grading and storage of agricultural products

Project must use advanced technology, such as fruit ripeness sensor, radio frequency pest control, nuclear magnetic resonance or x-ray.

1.4.3.2 Grading and storage of agricultural products using modern technology

1. Project must use modern technology, such as color sorter, vapor heat treatment to kill fruit fly eggs, seed coating, modified atmosphere packaging (MAP), controlled atmosphere packaging (CAP), cold storage or freezing.

A3 01 | Agricultural, Food and Biotechnology Industries Investment Promotion Guide 2023 | This complimentary guide book is not for sale 40

1.4.3.3 Rice grading and storage using modern technology

1.4.4 Cold storage, or cold storage and cold storage transportation

1.4.4.1 Cold storage, or cold storage and cold storage transportation using natural refrigerants

1.4.4.2 Cold storage, or cold storage and cold storage transportation

Project must use natural refrigerants. In case of using ammonia as a refrigerant, the ratio of ammonia must not exceed 49 percent of total refrigerants in the system.

The refrigerants must have limited environmental impact, based on relevant indicators, such as Global Warming Potential (GWP).

1.4.5

1. Total area must not be less than 50 rai.

2. The area for operations and services related to agricultural goods must not be less than 60% of the total land area. Space must be allocated for agricultural exhibition or trade, auction center, cold storage, and silos.

3. Inspection, grading, and pesticide, hazardous residue inspection services for agricultural products must be provided.

1.4.6

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must provide a platform to service farmers and business operators, and a system to monitor and control the quality of agricultural products. There must be a process to develop or hire others in the country to develop the software or platform for use in the project.

3. The sale of agricultural products must be on B2B (Business-to-Business) basis only.

4. Project must have a traceability system and a quality control system such as laboratory for quality testing.

Biotechnology Industry

1.5 Manufacture of biotechnology-derived products

1.5.1 Manufacture of bioplastic or products from bioplastic

Trading center for agricultural goods

Digital trade center for agricultural products

1.5.2

1.5.1.1 Manufacture of bioplastic or products from bioplastic derived from the continual process within the same project

from

Project must have certified by biobased content certificate, such as TISI 2734, ISO 16620 or an equivalent international standard. The certification must be completed the full operation deadline.

1. Project must have certified by biobased certificate, such as TISI 2734, ISO 16620 or an equivalent international standard. The certification must be completed before the full operation deadline.

2. Project must have plastic forming process from bioplastic.

1. Products must use raw materials from agricultural products, processed agricultural products, biomass or scrap or waste from agricultural processing industries at least 51 percent by weight.

2. Project with only mixing or dilution processes shall not be promoted.

3. Project must have certified or qualified by ready biodegradability international standard, such as OECD Guidelines for the Testing of Chemical, Test No. 301: Ready Biodegradability. The certification or qualification must be completed before the full operation deadline.

1.5.3.5 Manufacture of raw materials and/or essential materials for molecular biological research and development, experiment, testing or quality control for production of biological substance

1.6 Biotechnology development

1. Target technology development procedures shall be used as a base for the manufacturing process or service provision in the target industry as approved by the Board.

2. There must be a technology transfer with an educational institution or research institute as approved by the Board, such as Technology Research Consortium.

Section 2 Medical Industry

Medical Industry

2.1 Manufacture of medical products

2.1.1 Manufacture of non-woven fabric or hygienic products from non-woven fabric

2.1.1.1 Manufacture of non-woven fabric

2.1.1.2 Manufacture of hygienic products from non-woven fabric

2.1.2 Manufacture of medical devices

2.1.2.1 Manufacture of high-risk or high-technology medical devices

2.1.2.2 Manufacture of other medical devices Manufacture of medical devices made of fabrics or fibers shall not be promoted.

(10 years with no limit on the income tax exemption)

Activities

2.1.2.3 Manufacture of medical devices made of fabrics or fibers

1. Project must manufacture medical devices made of fabrics or fibers such as gowns, drapes, caps, face masks, gauze, or cotton wool.

2.1.2.4 Manufacture of medical device parts

2. Manufacture of gauze or cotton wool must start from raw cotton fabric or cotton yarn. Project must be certified by medical device international standard such as ISO 13485 or an equivalent international standard. The certification must be completed before the full operation deadline.

2.1.3 Manufacture of active pharmaceutical ingredients

2.1.4 Manufacture of medicines

2.1.4.1 Manufacture of targeted medicines

Project must manufacture active ingredients or raw material of active pharmaceutical ingredients (APIs).

1. Project must manufacture targeted medicine as announced by the Ministry of Public Health as of the submission date of promotion application.

2. Project must be certified by the international standard such as Good Manufacturing Practice (GMP) in accordance with Pharmaceutical Inspection Co-operation Scheme (PIC/S). The certification must be completed before the full operation deadline.

2.1.4.2 Manufacture of conventional medicines

2.2 Medical and health care services

2.2.1 Medical services

2.2.1.1 Specialty medical center

Project must be certified by the international standard such as Good Manufacturing Practice (GMP) in accordance with Pharmaceutical Inspection Cooperation Scheme (PIC/S). The certification must be completed before the full operation deadline.

1. Project must provide in shortage areas i.e., heart related issues (coronary artery disease, heart surgery, and heart failure), cancer related issues (chemotherapy and radiology), kidney related issues (dialysis center), physical therapy, and psychiatry.

2. Project must have appropriate human resource recruitment plans.

3. Project must have tools and equipment that are approved by the Board.

Activities

2.2.1.2 Senior hospital

Conditions

4. Project must obtain health establishment license. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

5. Project must comply with the regulations on professional standards, or other relevant standards of the Ministry of Public Health.

6. Project must consider the distribution of services and the people’s access to the centers.

7. Tools and equipment are allowed to be used with patients or other service recipients not directly related to the project. But the revenue thereof must not be included with the revenue that is eligible for corporate income tax incentives.

1. Project must have appropriate human resource recruitment plans.

2. Project must have tools and equipment that are approved by the Board.

3. Project must have more than 31 beds for overnight stays of admitted patients.

4. Project must obtain license for specific patient/ senior hospital. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

5. Project must comply with the regulations on professional standards, or other relevant standards of the Ministry of Public Health.

6. Project must have specific service and supporting unit for senior hospital which are approved by the Board before the full operation deadline.

7. Tools and equipment are allowed to be used with patients or other service recipients under 60 years old not directly related to the project. But the revenue thereof must not be included with the revenue that is eligible for corporate income tax incentives.

Incentives

2.2.1.3

Activities

Traditional or Applied Thai medical public service

Conditions Incentives

1. Project must obtain health establishment license. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

2. Project must comply with the regulations on professional standards, or other relevant standards of the Ministry of Public Health.

2.2.1.4 Hospital

1. Project must have more than 31 beds for overnight stays of admitted patients.

2. Project must have tools and equipment that are approved by the Board.

3. Project must obtain health establishment license. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

4. Project must comply with the regulations on professional standards, or other relevant standards of the Ministry of Public Health.

2.2.2 Health care services

2.2.2.1

Senior/dependent care center

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must be a senior/dependent care center according to the Health Business Establishments Act.

3. Project must have more than 31 beds for overnight stays of admitted patients.

4. Project must provide the senior/dependent persons with care and support by allowing them to stay overnight and offering rehabilitation activities.

5. Project must obtain health establishment license. The registration must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Activities

2.2.2.2 Health rehabilitation center

Conditions Incentives

1. Project must have the minimum investment capital at least 30 million baht (excluding cost of land and working capital).

2. Project must have medical technology for medical treatment and health rehabilitation, except narcotic drug therapy.

3. Project must have continuous rehabilitation programs, including overnight treatment.

2.3

2.3.1 Contract Research Organization (CRO)

1. Project must have scope of business to support and accommodate clinical research as follows:

1.1 Clinical research management

1.2 Clinical research monitoring and services such as

• Specimen and storage room management

• Clinical research supplies management

• Documentation and data management

• Waste disposal management

• Medical record management

• Participants, volunteers, or subject management

• A provision or service of facilities for clinical research such as out-patient and in-patient examination rooms or trial units

2. Project must have detail of human resource recruitment plans in the BOI-promoted project with Thai personnel working in relevant clinical research such as Clinical Research Associate (CRA) and must have been trained in Good Clinical Practice issued by the International Conference on Harmonization (ICH GCP), or equivalent standards. The certification must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Clinical Research

Activities

2.3.2 Clinical Research Center (CRC)

Conditions

3. Project must have expenses on salaries for Thai personnel working in relevant clinical research of at least 1,500,000 baht per year and it must be new employment. In this regard, the payroll and/or the capital must comply with the criteria specified by the Board, exclusively calculated for the project applied for promotion.

4. Project must have collaborations with research organizations, public health organizations, or local educational institutions as approved by the Board.

1. Project must have at least one scope of business as follows:

• Preclinical Research

• Clinical Research

• Bioavailability and Bioequivalence Studies

2. At least one stage of clinical research involving human subjects must be implemented as specified in the following:

• Phase I: Safety and Dosage

• Phase II: Efficacy and Side Effects

• Phase III: Efficacy and Monitoring of Adverse Reaction

• Phase IV: Post-marketing Surveillance

3. Project must present any relevant detail such as researchers’ data, infrastructure of research center, and human subject protection.

4. Facilities must be provided to accommodate clinical research implementation such as examination room, medicine storage or medical equipment used in clinical research.

5. Existing medical tools and equipment are allowed to use in the BOI-promoted project as approved by the Board.

6. The research methodology must comply with Good Clinical Practice: GCP or other equivalent standards.

Incentives

Activities

Conditions

7. Project must have expenses on salaries for Thai personnel working in relevant clinical research of at least 1,500,000 baht per year and it must be new employment, or must have capital investment of at least 1 million baht (excluding land cost, working capital and vehicles). In this regard, the payroll and/or the capital must comply with the criteria specified by the Board, exclusively calculated for the project applied for promotion.

8. Project must have Thai personnel working in clinical research and they must have been trained in Good Clinical Practice issued by the International Conference on Harmonization (ICH GCP), or other equivalent standards and project must receive permission by the Ethics Committee (EC) or the Institutional Animal Care and Use Committee (IACUC). The certification must be completed before exercising the incentive of corporate income tax exemption and before the full operation deadline.

9. Project must have collaborations with research organizations, public health organizations, or local educational institutions as approved by the Board.

Incentives

2

Advanced Manufacturing Industries Investment Promotion Division 2

Machine and Automation System Industries

3.1 Manufacture of machinery, equipment and parts, and repair of in-house fabricated machinery or equipment

3.2 Manufacture of scientific equipment

3.3 Manufacture of lenses that are not classified as medical devices

Automotive Industry

3.4 Manufacture of engines, equipment, or parts

3.5 Manufacture of vehicle parts

3.6 Manufacture of general automobile

3.7 Manufacture of motorcycles (except less than 248 cc engine displacement)

3.8 Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms

3.9 Manufacture of electric battery motorcycles

3.10 Manufacture of battery electric tricycles and battery electric tricycle platforms

3.11 Manufacture of battery electric buses and trucks and battery electric buses and truck platforms

3.12 Manufacture of electric bicycles (E-BIKE)

3.13 Manufacture of fuel cell electric vehicles (FCEV) and equipment for fuel cell system

3.14 Manufacture of fuel cells or parts

3.15 Building or repair of ships

3.16 Manufacture and/or repair of rolling stocks, parts, or equipment for rail system

3.17 Charging station and battery swapping station for electric vehicles

Space and aerospace Industry

3.18 Space and aerospace industry

Defense Industry

3.19 Manufacture and/or repair of vehicles and weapon systems for national defense

3.20 Manufacture and/or repair of unmanned systems for national defense and parts used in the manufacture and/or repair

3.21 Manufacture and/or repair of weapons and exercise-facilitating equipment for national defense and part

3.22 Manufacture and/or repair of combat facilitating equipment

Electrical Appliances and Electronics industry

4.1 Electronic design i.e. microelectronics, optoelectronics or embedded system

4.2 Manufacture of electronic products, devices and parts

4.3 Manufacture of electrical appliances, devices and parts

For more information regarding new and amended promoted activities, please scan:

Advanced Manufacturing Industries Investment Promotion Division 2

Section 3 Machinery and Vehicles Industry

Activities Conditions

Machine and Automation System Industries

3.1 Manufacture of machinery, equipment and parts, and repair of in-house fabricated machinery or equipment

3.1.1 Manufacture of automation machinery and/or automation equipment with engineering design

3.1.1.1 Manufacture of automation machinery and/or automation equipment with engineering design, including automation system integration and control system configuration

1. The product must be a system or machine that is fully automated and can perform at least two tasks at once continuously and collectively.

2. Project must have the following operations:

2.1 Design and development of automation system integration

2.2 Design of the operational control system configuration by the integrated automation system

2.3 Engineering design of machinery, equipment and parts

3.1.1.2 Manufacture of automation machinery and/or automation equipment with engineering design, including control system configuration

3.1.2 Manufacture of machinery, equipment and parts and/or repair of mould and die

Project must have the following operations:

1. Design of the operational control system configuration by the integrated automation system

2. Engineering design of machinery, equipment and parts

Project must have the forming process of parts that serve in the main function of the manufactured machinery and/or the engineering design.

3.1.3 Assembling of machinery and/or machinery equipment Project must have assembling process as approved by the Board.

3.1.4 Assembling of robots or automation equipment and/or automation parts

3.1.5 Manufacture of high-precision machinery, including equipment and parts of the machinery, and machinery repair

Project must have assembling process as approved by the Board.

3.2

3.1.5.1 Manufacture of high-precision machinery

1. Project must have part forming process and/or assembling process as approved by the Board.

2. Product must have one of the following features:

2.1 Product must be machinery that applies technology machinery in the manufacturing of electronics products such as integrated circuit (IC), semiconductor or microelectromechanical systems (MEMS)

2.2 Product must be capable of setting the production tolerance not more than IT5, according to the International Tolerance

Grades (IT)

3.1.5.2 Manufacture of equipment and parts for high precision machinery

1. Project must have part forming process and/or assembling process as approved by the Board.

2. Product must have one of the following features:

2.1 Product must be equipment or parts that serve in the main function of the machinery according to the Activity 3.1.5.1

2.2 The main machinery used in the project must be able to produce workpieces with a tolerance value not exceeding IT5, according to the International Tolerance

Grades (IT)

3.1.5.3

Repair of high precision machinery

1. Project must repair key parts that directly serve in the main function of high precision machinery.

2. Project must have expenses on salary for repairing personnel of at least 1,500,000 baht per year and it must be new employment, or capital investment (excluding cost of land and working capital) of at least 1 million baht.

A3 (with no limit on the income tax exempted)

3.2.1

of scientific equipment using high technology

Project must manufacture scientific equipment that is able to measure parameter value, process data and self-report the result or automatically measure and control the parameter.

3.2.2

Manufacture of scientific equipment

Manufacture

Manufacture of other scientific equipment

3.3 Manufacture of lenses that are not classified as medical devices

3.3.1 Manufacture of lenses from the glass melting process within the same project Manufacture of lenses that are classified as medical devices shall not be promoted.

3.3.2 Manufacture of lenses such as camera lenses Manufacture of lenses that classified as medical devices, sunglass lenses, cosmetic lenses or eyeglasses frame and parts shall not be promoted.

3.3.3 Manufacture of sunglasses lenses, cosmetic lenses, eyeglasses frame and parts

Automotive Industry

3.4 Manufacture of engines, equipment, or parts

3.4.1 Manufacture of automobile engines

1. In case project has part forming process of not less than 4 out of 5 parts, e.g. cylinder head, cylinder block, crankshaft, camshaft and connecting rod.

2. In case project has engine assembling process. A4

3.4.2 Manufacture of motorcycle engines

3.4.2.1 Manufacture of motorcycle engines with more than 248 cc engine displacement

1. In case of manufacture of motorcycle engine with more than 248 cc engine displacement but less than 500 cc, the project must have forming process in Thailand of not less than 4 out of 6 parts, e.g. cylinder head, cylinder block, crankcase, crankshaft, camshaft or connecting rod, which are either manufactured by own company or other manufacturers.

2. In case of manufacture of motorcycle engine with more than 500 cc engine displacement, the project must have forming process of not less than 2 out of 6 parts, e.g. cylinder head, cylinder block, crankcase, crankshaft, camshaft or connecting rod, which are either manufactured by own company or other manufacturers.

3. In case project has engine assembling process. A4

3.4.2.2 Manufacture of motorcycle engines with less than 248 cc engine displacement

1. In case project has forming process of the following parts: cylinder head, cylinder block, crankcase, crankshaft, camshaft or connecting rod.

Activities

3.4.3 Manufacture of engines for machinery

Conditions

Incentives

2. In case project has engine assembling process. A4

1. n case project has forming process of not less than 2 out of 6 parts, e.g. cylinder head, cylinder block, crankcase, crankshaft, camshaft and connecting rod.

2. In case project has engine assembling process. A4

3.4.4 Manufacture of multi-purpose engines or equipment

1. In case project has forming process of the following parts: cylinder head, cylinder block, crankcase, crankshaft, camshaft or connecting rod.

2. In case project has engine assembling process. A4

3.4.5

of equipment or parts for engine system

3.4.5.1 Manufacture of crankshaft

3.4.5.2 Manufacture of camshaft

3.4.5.3 Manufacture of gear

3.4.5.4 Manufacture of turbocharger

Project must have part forming process as approved by the Board.

Project must have part forming process as approved by the Board.

Project must have part forming process as approved by the Board.

1. In case of project with part forming process as approved by the Board.

2. In case of project with turbocharger assembling process. A4

3.4.5.5 Manufacture of turbocharger parts, i.e., turbine blade, turbine housing and bearing housing

Project must have part forming process as approved by the Board.

3.4.5.6 Manufacture of cylinder head Project must have part forming process as approved by the Board.

3.4.5.7 Manufacture of cylinder block and crankcase

Project must have part forming process as approved by the Board.

3.4.5.8 Manufacture of connecting rod Project must have part forming process as approved by the Board. A4

3.4.5.9 Manufacture of valve Project must have part forming process as approved by the Board.

Manufacture

3.5.4.1

1. In case of project with the cell production process, the project is eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

2. In case of project using cells in the production of modules or battery packs, the project is eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

3. In case of the project using modules in the production of battery packs.

Manufacture of electronic devices for controlling or efficiency improving of vehicle system

Manufacture of electronic stability control (ESC)

Manufacture of regenerative braking system

of idling stop system

Manufacture of autonomous emergency braking system

Manufacture of other electronic device for vehicle Project must have production process as approved by the Board.

3.5.4 Manufacture of equipment for electric vehicle

Manufacture of batterie

3.5.4.2 Manufacture of traction motor

3.5.4.3 Manufacture of electrical air-conditioning systems, i.e., compressor

3.5.4.4 Manufacture of battery management system (BMS)

Activities

3.5.17 Manufacture of other vehicle parts

Conditions

Incentives

1. In case project has part forming process as approved by the Board. A4

2. Other cases B

3.6 Manufacture of general automobile B

3.7 Manufacture of motorcycles (except less than 248 cc engine displacement)

1. Project must have forming process in Thailand of the following parts: cylinder head, cylinder block, crankcase, crankshaft, camshaft and connecting rod, which are either manufactured by own company or other manufacturers.

1.1 Manufacture of motorcycle with more than 248 cc engine displacement but less than 500 cc must have part forming process of not less than 4 out of 6 parts.

1.2 Manufacture of motorcycle with more than 500 cc engine displacement must have part forming process of 2 out of 6 parts.

2. Project must have structural welding process and spray-painting process, which are either manufactured by own company or other manufacturers.

3. Plan for manufacturing and utilization of parts must be proposed and approved by the Board.

Incentives

1. In case project meets conditions 1., 2. and 3. A3

2. In case project meets conditions 2. and 3. B

3.8 Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms

1. Plan must be proposed in package covering at least a manufacture project of BEVs and/ or BEV platforms; a manufacture project of electric batteries (own project or other manufacturer’s project); machinery importation and installation plans; manufacture plans of BEVs and/or BEV platforms in year 1-3; manufacture or procurement plans of other parts; electric charging station or battery swapping station development plans (only for BEV production); used battery management plans; and plans for developing local suppliers of raw materials and parts, with Thai shareholding of not less than 51 percent of its registered capital, in providing technology training and technical assistance.

Activities

Conditions

2. Electric vehicles to be marketed in the country must conform to the following standards and specifications:

2.1 The safety standard of the electrical power transmission system according to UN R100.

2.2 The active safety standard with ABS and ESC at the minimum (UN R13HW/ABS & ESC).

2.3 The standard for protection of occupants in the event of frontal and side collisions (UN R94 & UN R95).

2.4 The pollution standard of EURO 5 and above (UN R83) (only for HEVs and PHEVs).

2.5 Other standards and specifications as stipulated by relevant agencies such as the Thai Industrial Standards Institute and the Department of Land Transport. For BEV platforms, irrelevant product standards are waived such as the standard for occupant protection in the event of frontal and side collisions (UN R94 & UN R95).

3. The platform must consist of an energy storage system, charging module, and a front & rear axle module.

4. The manufacture of all approved categories of electric vehicles and/or BEV platforms, and electric batteries from using cells in the production of modules or battery packs must be started within 3 years from the issuance date of the investment promotion certificate.

5. At least one of the three key parts (traction motor, battery management system (BMS), and driving or motor control unit) must be additionally manufactured within 3 years after the starting production date of electric vehicles and/or BEV platforms.

6. For HEVs and PHEVs, at least 2 additional parts according to activity category 3.5.4 (manufacture of parts and equipment for electric vehicle) must be additionally manufactured within 3 years after the starting date of electric vehicle manufacture

Incentives

Activities

Conditions

7. No extension of machinery importation schedule shall be allowed, except for justifiable reasons.

8. In the case of the combined investment capital of not less than 5,000 million baht, excluding land costs and working capital, of the project package including the BEVs and/or BEV platforms manufacture, and key parts (electric battery, traction motor, battery management system (BMS), and driving or motor control unit) of the project and the suppliers, the following incentives shall be granted:

• for PHEVs

• for BEVs and BEV Platforms. The projects may apply for additional incentives for competitiveness enhancement measure under the categories of research and development of technology and innovation, and/or advanced technology training according to the specified criteria

9. In the case of an investment capital less than 5,000 million baht, excluding land costs and working capital, of the project package including the production of BEV vehicles and/or BEV platforms and the production of key parts (electric battery, traction motor, battery management system (BMS), and driving or motor control unit), of the project and the suppliers, the following incentives shall be granted:

• for PHEVs

• for BEVs and BEV platforms

Additional incentives:

9.1 If key parts of BEVs and/or BEV platforms, except electric batteries are manufactured in addition to the basic criteria within 3 years after the starting date of manufacturing electric vehicles and/or BEV platforms, an additional 1-year corporate income tax exemption shall be granted for each part.

Incentives

Activities

Conditions

9.2 If, in any year within 3 years as from the start of the manufacture, the actual production of BEVs and/or BEV platforms is more than 10,000 cars (units) per year, an additional 1-year corporate income tax exemption shall be granted.

9.3 The approved projects may apply for additional incentives to enhance competitiveness in the category of research and development of technology and innovation and/or advanced technology training under the prescribed criteria.

10. No additional incentives shall be granted on the merit of industrial area development.

11. The promoted projects in eco-car production can include all types of electric vehicles manufactured under the project as the actual production quantity of international standard eco-cars. The vehicles produced for the domestic market must have environmental qualifications following the international standard for eco-car manufacture.

1. Plan must be proposed in package covering the electric battery motorcycle manufacture project; the manufacture of electric battery (own project or other manufacturer’s project); machinery importation and installation plan, electric motorcycle manufacture plans for year 1 to year 3; manufacture or procurement plan of other parts; EV charging station or battery swapping station development plan; used battery management plan; and local supplier development plan for raw materials or parts, with Thai shareholding of not less than 51 percent of its registered capital in the technological training and technical assistance.

2. Must manufacture battery electric motorcycles and electric battery within 3 years as from the issuance of promotion certificate.

Incentives

3.9 Manufacture of electric battery motorcycles

Activities

Conditions

3. Electric motorcycle distributed domestically must conform to the following standards and specifications:

3.1 Safety standard of electrical transmission system according to UN R136

3.2 Tire standard according to TISI 2720 or UN R75

3.3 ABS or CBS standard according to UN R78

3.4 Other standards and specifications stipulated by relevant agencies such as the Thai Industrial Standards Institute and the Department of Land Transport

4. No extension of machinery importation schedule shall be allowed, except for justifiable reasons.

5. Additional incentives

5.1 If electric battery manufacture starts from using cells in the production of modules or battery packs within 3 years as from the promotion certificate issuance, an additional 1-year corporate income tax exemption shall be granted for each part.

5.2 If any additional key parts, i.e., traction motor, battery management system (BMS), and driving or motor control unit, are produced within 3 years as from the promotion certificate issuance, an additional 1-year of corporate income tax exemption shall be granted for each part.

5.3 The approved projects may apply for additional incentives to enhance competitiveness in the category of research and development of technology and innovation and/or advanced technology training under the prescribed criteria.

6. No additional incentives shall be granted on the merit of industrial area development.

Incentives

A4

3.10 Manufacture of battery electric tricycles and battery electric tricycle platforms

Activities

Conditions

other manufacturer’s project); machinery importation and installation plans; charging station or battery swapping networking plans (only for battery electric tricycle production); manufacture plans of battery electric tricycle and/or battery electric tricycle platforms for year 1-3; manufacture or procurement plans of other parts; used battery management plans; and plans for developing local suppliers of raw materials and parts, with Thai shareholding of not less than 51 percent of its registered capital, in providing technology training and technical assistance.

2. The platforms must consist of an energy storage system, charging module, and front and rear axle module.

3. The battery electric tricycles and/or battery electric tricycle platforms, and electric batteries must be manufactured within 3 years from the issuance date of the investment promotion certificate.

4. The battery electric tricycles and the battery electric tricycle platforms to be marketed in the country must conform to the following standards and specifications:

4.1 The safety standard of the electrical power transmission according to UN R136.

4.2 Other standards and specifications as stipulated by relevant agencies such as the Thai Industrial Standards Institute and the Department of Land Transport.

5. No extension of the machinery importation schedule shall be allowed, except for justifiable reasons.

6. Additional incentives:

6.1 If the manufacture of electric batteries from using cells in the production of modules or battery packs is started within 3 years from the issuance date of the investment promotion certificate, an additional 1- year corporate income tax exemption shall be granted.

Incentives

Activities

Conditions

6.2 If any additional key parts, i.e., traction motor, battery management system (BMS), and driving or motor control unit are manufactured within 3 years from the issuance date of the promotion certificate, an additional corporate income tax exemption for 1 year per part shall be granted.

6.3 The approved projects may apply for additional incentives to enhance competitiveness under the category of research and development of technology and innovation, and/or advanced technology training under the prescribed criteria.

7. No additional incentives shall be granted on the merit of industrial area development.

1. Plan must be proposed in package covering a manufacture project of battery electric buses or battery electric trucks and/or battery electric bus or truck platforms; a manufacture project of electric batteries (own project or of other manufacturer’s project); machinery importation and installation plans; manufacture plans of battery electric buses and trucks and/ or battery electric bus or truck platforms in year 1-3; production or procurement plans of other parts; charging station or battery swapping station development plans (for the production of battery electric buses or trucks only); used battery management plans; and plans for developing local suppliers of raw materials and parts, with Thai shareholding of not less than 51 percent of its registered capital, in providing technology training and technical assistance.

2. The platforms must consist of an energy storage system, charging module, and front and rear axle module.

3. The battery electric buses and trucks, and/ or platform of battery electric buses or trucks, and electric batteries must be manufactured

Incentives

3.11 Manufacture of battery electric buses and trucks and battery electric buses and truck platforms

Activities

Conditions

within 3 years from the issuance date of the investment promotion certificate.

4. Battery electric buses and trucks and battery electric bus or truck platforms to be marketed in the country must conform to the following standards and specifications:

4.1 The safety standard of the electrical power transmission according to UN R 100.

4.2 Other standards and specifications as stipulated by relevant agencies such as the Thai Industrial Standards Institute and the Department of Land Transport.

5. No extension of the machinery importation schedule shall be allowed except for justifiable reasons.

6. Additional incentives:

6.1 If the manufacture of electric batteries from the using cells in the production of modules or battery packs is started within 3 years from the issuance date of the investment promotion certificate, an additional 1- year corporate income tax exemption shall be granted.

6.2 If any additional key parts, i.e., traction motor, battery management system (BMS), and driving or motor control unit are manufactured within 3 years from the issuance date of the promotion certificate, an additional corporate income tax exemption for 1 year per part shall be granted.

6.3 The approved projects may apply for additional incentives to enhance competitiveness under the category of research and development of technology and innovation, and/or advanced technology training under the prescribed criteria.

7. No additional incentives shall be granted on the merit of industrial area development.

Incentives

Activities

3.12 Manufacture of electric bicycles (E-BIKE)

Conditions

1. Plan must be proposed in package covering (1) a manufacture project of electric bicycles, (2) a manufacture project of electric batteries (own project or other manufacturer’s project); and (3) used battery management plans.

2. Electric bicycles and electric batteries must be manufactured within 3 years from the issuance date of the investment promotion certificate.

3. The projects must use electric bicycle frames from lightweight materials such as aluminum alloy, chromium-molybdenum alloy steel (Chrome Moly), titanium alloy and carbon fiber, etc.

4. Electric bicycles manufactured by the project must comply with the EN15194 standard or equivalent.

5. The battery used in electric bicycles must be of an environmentally friendly technology.

6. Bicycles can be produced together with electric bicycles in the project. However, the manufacture of bicycles is not eligible for the benefits of corporate income tax exemption.

7. No extension of the machinery importation schedule shall be allowed except for justifiable reasons.

8. Additional incentives:

8.1 If the manufacture of traction motors is started within 3 years from the issuance date of the investment promotion certificate, an additional 1-year corporate income tax exemption shall be granted.

8.2 If the manufacture of electric bicycle frames with lightweight materials is started within 3 years from the issuance date of the investment promotion certificate, an additional 1-year corporate income tax exemption shall be granted.

Incentives

3.15.1

3.15.2

Activities

Conditions

8.3 The approved projects may apply for additional incentives to enhance competitiveness under the category of research and development of technology and innovation according to the specified criteria.

9. No additional incentives shall be granted on the merit of industrial area development.

Incentives

In case of manufacture of fuel cell electric vehicle (FCEV), plans must be proposed in package covering a manufacture project of fuel cell electric vehicle (FCEV) and a manufacture project of fuel cell (own project or of other manufacturer’s project); machinery importation and installation plans; manufacture plans in year 1-3; manufacture or procurement plans of other parts; ; hydrogen fueling station development plans; used battery management plans; and local supplier development plan for raw materials and parts, with Thai national shareholding of not less than 51 percent of its registered capital in the technological training and technical assistance.

Project must be obtained ISO 14000 within 2 years as from full operation deadline.

Project must be obtained ISO 14000 within 2 years as from full operation deadline.

3.13 Manufacture of fuel cell electric vehicles (FCEV) and equipment for fuel cell system

3.13.1 Manufacture of fuel cell electric vehicles (FCEV)

3.13.2 Manufacture of equipment for fuel cell system

3.14 Manufacture of fuel cells or parts

3.15 Building or repair of ships

Building or repair of ships not less than 500 tons gross

Building or repair of ships less than 500 tons gross (only steel or fiber glass ships with installed engine and equipment)

3.16 Manufacture and/or repair of rolling stocks, parts, or equipment for rail system

3.16.1 Manufacture of trains and/or rolling stocks such as passenger cars and cargo cars

Activities

3.16.1.1 Manufacture of trains and/or rolling stocks such as passenger cars and cargo cars, that requires engineering design

3.16.1.2 Manufacture of trains and/or rolling stocks such as passenger cars and cargo cars

3.16.2 Repair of trains or parts, or rail system equipment.

Conditions

1. Project must have engineering design process.

2. Project must comply with international standard or related government agencies’ specifications.

Project must comply with international standard or related government agencies’ specifications.

Incentives

3.16.3 Manufacture of rail system parts or equipment

Project must have overhaul or repair activities using high level of technology. A3 (with no limit on the income tax exempted)

1. Project must have production process as approved by the Board.

2. Project must manufacture rail system parts or equipment, i.e.,

1) Main structure

2) Rolling stocks

3) Cab and equipment

4) Bogie

5) Break system and/or major parts

6) Couplers

7) Air condition and ventilation system and/ or major parts

8) Air compressor and distributor and/or major parts

9) Door system and/or major parts

10) Lighting system and/or major parts

11) Communication and observation systems and/or major parts

12) Controlli ng and signaling systems and/or major parts

13) Electric power and distribution system

14) Track and parts

3.17 Charging station and battery swapping station for electric vehicles

3.17.1 Electrical vehicle charging station

1. Project must submit a procurement plan for equipment and parts.

2. Project must submit an EV smart charging system development plan or a plan to connect the

Activities

3.17.2 Electrical vehicle battery swapping station

Conditions

charging system to an EV charging network operator platform or a central platform for the charging network management.

3. Project must comply with the laws or safety standards of relevant authorities such as the Ministry of Energy, Metropolitan Electricity Authority, Provincial Electricity Authority, Ministry of Industry.

4. The following incentives shall be granted:

• For projects with no fewer than 40 chargers of which at least 25% are quick-charging units (DC type).

• Other cases

1. Project must submit a procurement plan for equipment and parts.

2. Project must submit an EV smart charging system development plan or a plan to connect the charging system to an EV charging network operator platform or a central platform for the charging network management.

3. Project must comply with the laws or safety standards of relevant authorities such as the Ministry of Energy, Metropolitan Electricity Authority, Provincial Electricity Authority, Ministry of Industry.

4. Battery shall not eligible for import duty exemption (Section 28).

Space and aerospace Industry

3.18 Space and aerospace industry

3.18.1 Manufacture or repair of aircrafts, or aerospace devices and equipment

3.18.1.1 Manufacture of aircrafts or aircraft parts Project must manufacture aircraft or aircraft parts such as airframe, critical parts, appliance, equipment or other components.

3.18.1.2 Manufacture of onboard devices or equipment Project must manufacture onboard devices or equipment such as seats, life vests, trolley or galley. Manufacture of disposable and reusable aircraft utilities or supplies shall not be promoted.

Incentives

Activities Conditions

3.18.1.3 Repair of aircraft or aircraft parts

The project is eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

3.18.1.4 Repair of onboard devices or equipment Repair of disposable and reusable aircraft utilities or supplies shall not be promoted.

3.18.1.5 Manufacture of ground support equipment and ground support service

1. Manufacture of bus or passenger transport vehicles, airport trolley, aviation belt or air transport aviation freight pallet shall not be promoted..

2. In case project has part forming process and/ or engineering design process.

3. In case project has assembling process as approved by the Board

Incentives

3.18.2 Manufacture, design and development of space equipment and provision of space services

3.18.2.1 Manufacture of space equipment

1. Project must manufacture space products and equipment such as spacecraft, satellites, and propulsion systems for guided rockets and space vehicles.

2. The project is eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

3.18.2.2 Manufacture of mechanical parts and/or electronic parts for satellites or space objects of various form

3.18.2.3 Design and development of system or software related to satellites and ground stations

Project must have design and development of system or software such as system or software for satellite platform, payload system, searching system, space debris mitigation system or space navigation system.

3.18.2.4 Space launching services or manufacture of launch mission control systems

3.18.2.5 Aeropace support activities Project must conduct aerospace support activities such as testing laboratory for satellites and other space objects and/or standard certification for parts

Defense Industry

3.19 Manufacture and/or repair of vehicles and weapon systems for national defense

1. Project must manufacture vehicles and weapon systems for national defense, i.e., tank, armored car, combat vehicle, combat-facilitating vehicle.

2. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

3.20 Manufacture and/or repair of unmanned systems for national defense and parts used in the manufacture and/or repair

3.20.1 Manufacture and/or repair of unmanned ground system (UGS) and parts

1. Project must manufacture unmanned ground system (UGS) such as unmanned ground vehicle (UGV), robot for military operations or small robot.

2. Project must manufacture parts for unmanned system such as main structure, mechanical arm, handle, communication system, camera system, computer system, electrical system, or battery.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

4. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

Activities

3.20.2 Manufacture and/or repair of unmanned maritime system (UMS) and parts

Conditions

1. Project must manufacture unmanned maritime system (UMS) such as unmanned surface vehicle (USV) or unmanned underwater vehicle (UUV).

2. Project must manufacture parts for unmanned system such as main structure, mechanical arm, handle, communication system, camera system, computer system, electrical system, or battery.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

4. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

Incentives

3.20.3 Manufacture and/or repair of unmanned aircraft system (UAS) and parts

1. Project must manufacture unmanned aircraft system (UAS) such as fixed wing unmanned vehicle, rotor unmanned vehicle and combined fixed wing/rotor unmanned vehicle.

2. Project must manufacture parts for unmanned system such as main structure, mechanical arm, handle, communication system, camera system, computer system, electrical system, or battery.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

4. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

3.21 Manufacture and/or repair of weapons and exercise-facilitating equipment for national defense and part

3.21.1 Manufacture and/or repair of weapons

Activities

3.21.1.1 Manufacture of firearm and parts and/or repair of firearm

Conditions

1. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

2. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

3. Project must receive permission in accordance with the Private Weapon Manufacturing Factory Act B.E. 2550 (A.D. 2007).

4. The applicant must have a Thai shareholding of at least 51 percent of the registered capital, except for an activity established by the National Institute of Defense Technology or jointly with other parties incorporated as a juristic entity which is exempted under the Defense Technology Act B.E. 2562 (2019).

Incentives

3.21.1.2 Manufacture of ammunition and parts

1. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

2. Project must receive permission in accordance with the Private Weapon Manufacturing Factory Act B.E. 2550 (A.D. 2007).

3. The applicant must have a Thai shareholding of at least 51 percent of the registered capital, except for an activity established by the National Institute of Defense Technology or jointly with other parties incorporated as a juristic entity which is exempted under the Defense Technology Act B.E. 2562 (2019).

3.21.1.3 Manufacture of rocket system and parts and/or repair of rocket system

1. Project must manufacture rocket system such as firing vehicle or rocket leading item.

2. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

Activities

3.21.2 Manufacture of simulation and virtual training system and parts and/or repair of simulation and virtual training system

Conditions

4. Project must receive permission in accordance with the Private Weapon Manufacturing Factory Act B.E. 2550 (A.D. 2007).

5. The applicant must have a Thai shareholding of at least 51 percent of the registered capital, except for an activity established by the National Institute of Defense Technology or jointly with other parties incorporated as a juristic entity which is exempted under the Defense Technology Act B.E. 2562 (2019).

1. Project must manufacture of simulation and virtual training system such as virtual training facilitating systems for combat vehicles, personal weapon and unit weapon training field systems, Joint Theater Level Simulation systems (JTLS).

2. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

4. Project must have system design or software development activity.

Incentives

3.22 Manufacture and/or repair of combat facilitating equipment

1. Project must manufacture combat facilitating equipment such as bullet-proof and flak-proof vests, armours or bullet-proof and flak-proof shields.

2. Product must be certified with approved test or standard by the Ministry of Defense or the National Institute of Defense Technology.

3. In the case of repair work, it must involve extensive maintenance or requires advanced technology, and must adhere to the standards approved by agencies under the Ministry of Defense or the National Institute of Defense Technology.

Section 4 Electrical Appliances and Electronics industry

Activities

Conditions

Electrical Appliances and Electronics industry

4.1 Electronic design i.e. microelectronics, optoelectronics or embedded system

1. Project must have expenses on salaries for electronics design personnel of at least 1,500,000 baht per year and it must be new employment, or must have capital investment of at least 1,000,000 baht (excluding cost of land, working capital and vehicles)

2. To exercise the benefits of corporate income tax exemption from the sale of products or services which are directly related to the promoted business, one of the following evidences must be provided:

• Patents for products or services which are directly related to the promoted business.

• Letters from the National Science and Technology Development Agency or relevant institutions for each product or service, which certify that the products or services are electronic designs of the project.

4.2 Manufacture of electronic products, devices and parts

4.2.1 Manufacture of wafer Project must have production process as approved by the Board.

Incentives

(13 year with no limit on the income tax exempted)

4.2.2 Manufacture or test of semiconductors and integrated circuits (IC)

4.2.2.1 Manufacture or test of semiconductors and integrated circuits (IC), which is a largescale investment

1. Project must manufacture or test of semiconductors and integrated circuits (IC) and products obtained in between the manufacturing process or downstream products such as wafer grinding, sawed dice, wafer testing, IC, testing and IC Module

2. For the manufacturing and testing of integrated circuits (IC), the cost of refurbishment of existing machines shall be regarded as an investment and will be taken into account in the calculation of corporate income tax exemption cap. The original cost of existing machines shall not be regarded as an investment.

Activities

4.2.2.2 Manufacture or test of semiconductors and integrated circuits (IC)

Conditions

3. The investment capital in machinery (including cost of installation and test run) used in the manufacturing or testing process must not be less than 1,500 million baht.

1. Project must manufacture or test of semiconductors and integrated circuits (IC) and products obtained in between the manufacturing process or downstream products such as wafer grinding, sawed dice, wafer testing, IC testing and IC Module

2. For the manufacturing and testing of integrated circuits (IC), the cost of refurbishment of existing machines shall be regarded as an investment and will be taken into account in the calculation of corporate income tax exemption cap. The original cost of existing machines shall not be regarded as an investment.

Incentives

4.2.3 Manufacture of electronic passive components such as resistors, capacitors and inductors

4.2.3.1 Manufacture of electronic passive components in the form of surface-mount devices, which is a large-scale investment

4.2.3.2 Manufacture of electronic passive components in the form of surface-mount devices

4.2.3.3 Manufacture of electronic passive components in the form of through-hole devices

The investment capital in machinery (including cost of installation and test run) used in the manufacturing process must not be less than 1,500 million baht.

4.2.4

Manufacture

of circuit board and/or parts

4.2.4.1 Manufacture of printed circuit boards in the form of highdensity interconnect

The investment capital in machinery and the manufacturing process must be approved by the Board.

4.2.4.2 Manufacture of flexible printed circuit boards, multilayer printed circuit boards or parts, which is a large-scale investment

4.2.4.3 Manufacture of flexible printed circuit boards, multilayer printed circuit boards or parts.

4.2.4.4 Manufacture of printed circuit boards or parts

4.2.5 Manufacture of printed circuit board assemblies (PCBA) and downstream products from PCBA in the same project.

4.2.5.1 Manufacture of printed circuit board assemblies (PCBA) or downstream products from PCBA in the same project, which is a large-scale investment

4.2.5.2 Manufacture of printed circuit board assemblies (PCBA) or downstream products from PCBA in the same project, which uses the surface mount technology to the whole production line

4.2.5.3 Manufacture of printed circuit board assemblies (PCBA) or downstream products from PCBA in the same project.

4.2.6 Manufacture of printed electronics

4.2.6.1 Manufacture of printed electronics using more than 1 type of printing material

4.2.6.2 Manufacture of printed electronics using 1 type of printing material

The investment capital in machinery (including cost of installation and test run) used in the manufacturing process must not be less than 1,500 million baht.

1. The whole assembly line of PCBA in the same project must use the surface mount technology.

2. The investment capital in machinery (including cost of installation and test run) used in the manufacturing process must not be less than 500 million baht.

The whole assembly line of PCBA in the same project must use the surface mount technology.

4.2.7 Manufacture of parts, data storage and memory storage

4.2.7.1

4.2.7.2 Manufacture

1. The whole assembly line of PCBA in the same project must use the surface mount technology.

2. The cost of refurbishment of existing machines shall be regarded as an investment and will be taken into account in the calculation of corporate income tax exemption cap. The original cost of existing machines shall not be regarded as an investment.

1. The areal density of hard disk drives must not be less than 2,000 gigabits per square inch.

2. The production of top covers or base plates or peripherals shall not be promoted.

3. The cost of refurbishment of existing machines shall be regarded as an investment and will be taken into account in the calculation of corporate income tax exemption cap. The original cost of existing machines shall not be regarded as an investment.

4.2.7.3

1. Project must manufacture hard disk drives and/or critical parts such as spindle motors, suspensions, head gimbal assemblies and voice coil motors.

2. The production of top covers or base plates or peripherals shall not be promoted.

3. The cost of refurbishment of existing machines shall be regarded as an investment and will be taken into account in the calculation of corporate income tax exemption cap. The original cost of existing machines shall not be regarded as an investment.

4.2.7.5

The whole assembly line of PCBA in the same project must use the surface mount technology.

Manufacture of solid-state drives

of advanced technology hard disk drives and/or critical parts

Manufacture of hard disk drives and/or critical parts

4.2.7.4 Manufacture of other parts of hard disk drive such as top covers, base plates, pins and filters

Manufacture of external hard disk drives and other memory storage such as flash drives

Activities

4.2.8 Manufacture of

energy storage

4.2.8.1 Manufacture of high-density batteries with the cell production process

1. Project must manufacture high-density batteries with the properties as approved by the Board as followings:

1) Specific energy density not less than 150 Wh/g

2) Charging cycle not less than 500 cycles

2. The project will be eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

4.2.8.2 Manufacture of high-density batteries in the case of using cells in the production of modules or battery packs

1. Project must manufacture high-density batteries with the properties as approved by the Board as followings:

1) Specific energy density not less than 150 Wh/g

2) Charging cycle not less than 500 cycles

2. The project is eligible for a 90 percent reduction in import duties on non-locally produced raw materials and essential materials for five years under Section 30. The benefit will be approved for one year at a time, starting from the date of the first import of raw materials.

4.2.8.3 Manufacture of high-density batteries in the case of using modules in the production of battery packs

Project must manufacture high-density batteries with the properties as approved by the Board as followings:

1) Specific energy density not less than 150 Wh/g

2) Charging cycle not less than 500 cycles

4.2.8.4 Manufacture of supercapacitors Project must manufacture supercapacitors with the properties as approved by the Board as followings:

1) Specific energy density not less than 10,000 Wh/g

2) Charging cycle not less than 10,000 cycles

4.2.8.5 Manufacture of other batteries The production of lead-acid batteries shall not be promoted. B

4.2.9 Manufacture of flat panel displays and parts

4.2.9.1 Manufacture of flat panel displays or critical parts

1. Project must manufacture flat panel displays or critical parts such as backlight panel, diffuser, LCD film, electrode and polarizing film.

2. Project must have production process as approved by the Board.

4.2.9.2 Manufacture of other parts of flat panel displays

4.2.10 Manufacture of electro-magnetic products and parts

4.2.11 Manufacture of parts, peripheral devices and signal cables 4.2.11.1 Manufacture of optical fibers Project must have production process as approved by the Board.

Project must have production process as approved by the Board.

4.2.11.3 Manufacture of parts, peripheral devices and signal cables with the continual manufacturing process from metal forming or the fabrication of electrically conductive materials in the same project

4.2.11.4 Manufacture

4.2.12 Manufacture of parts or equipment for solar-powered products

4.2.12.1 Manufacture of solar cells and/or raw materials for solar cell

4.2.12.2 Manufacture of solar panels from the solar cells produced within the same project

A2

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Activities

4.2.13 Manufacture of smart electrical appliances and smart electronics

4.2.13.1

Manufacture

of

smart

electrical

Conditions Incentives

appliances

and smart electronics, which is a largescale investment

1. Project must manufacture smart electrical appliances with the following properties:

• Have electronic components that can detect and receive the data as the principal element.

• Can connect to other devices or equipment or network through wireless system.

• Have the operating or processing system embedded into such equipment or devices.

2. The production of electrical plugs, illumination devices and light bulbs shall not be promoted.

3. The investment capital in machinery (including cost of installation and test run) must not be less than 1,500 million baht.

4. The whole assembly line of PCBA must use the surface mount technology in the same project.

4.2.13.2 Manufacture of smart electrical appliances and smart electronics

1. Project must manufacture smart electrical appliances with the following properties:

• Have electronic components that can detect and receive the data as the principal element.

• Can connect to other devices or equipment or network through wireless system.

• Have the operating or processing system embedded into such equipment or devices.

2. The production of electrical plugs, illumination devices and light bulbs shall not be promoted.

3. Additional incentives

In case the whole assembly line of PCBA in the same project uses the surface mount technology, 1-year of corporate income tax exemption will be additionally granted.

4.2.14 Manufacture of audio-visual products and parts

4.2.14.1 Manufacture of audio-visual products and parts, which are produced from the PCBA manufactured within the same project

4.2.14.2 Manufacture of audio-visual products and parts

4.2.15 Manufacture of office electronics and parts

4.2.15.1 Manufacture of office electronics and parts, which are produced from the PCBA manufactured within the same project

4.2.15.2 Manufacture of office electronics and parts

4.2.16 Manufacture of telecommunication devices and wireless-system devices

4.2.16.1 Manufacture of optical modules, optical devices, electro-optical modules, or electro-optical devices

4.2.16.2 Manufacture of network device for office and home use such as router, access point, network switch, repeater, extender and gateway, which are produced from the PCBA manufactured within the same project; or which has part forming process

The whole assembly line of PCBA in the same project must use the surface mount technology.

The whole assembly line of PCBA in the same project must use the surface mount technology.

Project must have one of the following production processes:

1. Assembling of PCBA using the surface mount technology to the whole line in the same project.

2. Assembling of optical chip

Project must meet one of the following production processes:

1. Assembling of PCBA using the surface mount technology to the whole line in the same project.

2. Forming of part

4.2.16.3 Manufacture of network device for office and home use such as router, access point, network switch, repeater, extender and gateway

4.2.17 Manufacture of electronic measuring instruments and parts

4.2.17.1 Manufacture of electronic measuring instrument and parts, which are produced from the PCBA manufactured within the same project

4.2.17.2 Manufacture of electronic measuring instruments and parts

4.2.18 Manufacture of power supply, converter, inverter or charger

4.2.18.1 Manufacture of power supply, converter, inverter or charger which has operation control software

4.2.18.2 Manufacture of power supply, converter, inverter or charger

4.2.19 Manufacture of products using microtechnology

Project must have one of the following production processes:

1. Assembling of PCBA using the surface mount technology to the whole line in the same project

2. Forming of part

4.2.20 Manufacture of other electronics products and parts

Project must have following production processes:

1. Designing of circuit layout for the circuit board (PCB Design)

2. Loading of control software within the same project

Project must have production process as approved by the Board

The project must meet one of the following conditions:

1. The products must be manufactured using microfabrication technology such as Micro Electro Mechanical Systems (MEMS), microelectronics, and microsensors; or microtechnology such as micro coils, micro magnets, micro components, micro rotors, micro ceramics, brushless motors

2. The main machinery used in the project must be able to produce workpieces with a tolerance value not exceeding IT5, according to the International Tolerance Grades (IT)

4.3 Manufacture of electrical appliances, devices and parts

4.3.1

of electrical appliances 1. Project must manufacture air conditioners, refrigerators, freezers, washing and drying machines

2. Product must meet Thailand’s energy efficiency standards and have the high energy efficiency label (label no. 5) from the Ministry of Energy or have other equivalent energy efficiency.

4.3.2

Basis and Supporting Industries

Investment Promotion Division 3

Mineral Industry

5.1 Prospecting of minerals, mining, mineral dressing, mineral smelting, metallurgy operations of targeted potential minerals

Materials Industry

5.2 Manufacture of materials

5.3 Targeted core technology development for materials industry

Steels and Irons Industries

5.4 Manufacture of steels and irons

Chemical Petrochemical and Plastic Industries

6.1 Manufacturing of chemical

6.2 Manufacturing of chemical products for industry

6.3 Manufacture of petrochemical products

6.4 Manufacture of plastic products

6.5 Manufacture of pulp or paper

6.6 Manufacture of products from pulp or paper

Public Utilities and Environment

7.1 Public utilities and basic services

Real estate development for

industrial use

7.2 Real estate development for industrial use

For more information regarding new and amended promoted activities, please scan:

Basis and Supporting Industries Investment Promotion Division 3

Section 5 Metal and Material Industry

Activities

Mineral Industry

5.1 Prospecting of minerals, mining, mineral dressing, mineral smelting, metallurgy operations of targeted potential minerals

Conditions Incentives

5.1.1 Prospecting of minerals Project must obtain prospecting licenses (Prospecting Atchaybat: PA or Special Atchayabat: SA) before applying for investment promotion.

5.1.2 Mining, mineral dressing, mineral smelting, metallurgy operations of targeted potential minerals

5.1.2.1 Mining of targeted potential minerals

1. Project must obtain mining licenses (Prathanabat) or mining sublease licenses before applying for investment promotion.

2. Project must involve activities related to targeted potential minerals such as rare earths, precious metals, alkali metals, quartz, potash and other minerals specified by the National Mineral Management Policy Commission (except industrial stones for the construction industry).

3. Project must obtain the certification of Green Mining or Corporate Social Responsibility from the Department of Primary Industries and Mines (CSR-DPIM) or other international standards approved by the Board within two years from the deadline for full operation.

4. Project must obtain Mining 4.0 certification from the Department of Primary Industries and Mines, or other international standards approved by the Board within two years after the deadline for full operation. If the project fails to comply the condition, the corporate income tax exemption will be withdrawn for one year.

5.1.2.2 Mineral dressing from the mining of targeted potential minerals within the same project

Conditions Incentives

5. Project must have a real-time monitoring and reporting system for environmental impacts in place within two years of the deadline for full operation. If the project fails to comply with the condition, the corporate income tax exemption will be withdrawn for one year.

6. In case of the same juristic person continued mining after the prospecting of targeted potential minerals, the costs incurred by the mineral prospecting with the concession certificate, endorsed by the Department of Primary Industries and Mines, can be included for the calculation of corporate income tax exemption.

7. Existing activities, regardless of whether they are BOI-promoted or not, may apply for incentives under the Smart and Sustainable Industry Measure, the conditions 3-5 must be fulfilled before the full operation deadline.

1. Project must obtain mining licenses (Prathanabat) or mining sublease licenses before applying for investment promotion.

2. In the case of mineral dressing outside the concession certificate area, project must obtain a mineral dressing license before applying for investment promotion.

3. Project must involve activities related to targeted potential minerals such as rare earths, precious metals, alkali metals, quartz, potash and other minerals specified by the National Mineral Management Policy Commission (except industrial stones for the construction industry).

4. Project must obtain the certification of Green Mining or Corporate Social Responsibility from the Department of Primary Industries and Mines (CSR-DPIM) or other international standards approved by the Board within two years from the deadline for full operation.

Activities

5.1.2.3 Mineral smelting and/or metallurgy operations from the mining of targeted potential minerals within the same project

Conditions

5. Project must obtain Mining 4.0 certification from the Department of Primary Industries and Mines, or other international standards approved by the Board within two years after the deadline for full operation. If the project fails to comply the condition, the corporate income tax exemption will be withdrawn for one year.

6. Project must have a real-time monitoring and reporting system for environmental impacts in place within two years of the deadline for full operation. If the project fails to comply with the condition, the corporate income tax exemption will be withdrawn for one year.

7. In case of the same juristic person continued mining after the prospecting of targeted potential minerals, the costs incurred by the mineral prospecting with the concession certificate endorsed by the Department of Primary Industries and Mines, can be included for the calculation of corporate income tax exemption.

8. Existing activities, regardless of whether they are BOI-promoted or not, may apply for incentives under the Smart and Sustainable Industry Measure, the conditions 4-6 must be fulfilled before the full operation deadline.

1. Project must obtain mining licenses (Prathanabat) or mining sublease licenses before applying for investment promotion.

2. In the case of mineral dressing and/or metallurgy operations outside the concession certificate area, project must obtain a mineral dressing license and/or a metallurgy operations license before applying for investment promotion.

3. Project must involve activities related to targeted potential minerals such as rare earths, precious metals, alkali metals, quartz, potash and other minerals specified by the National Mineral Management Policy Commission (except industrial stones for the construction industry).

Incentives

Activities

5.1.2.4 Mineral dressing, mineral smelting or metallurgy operations of targeted potential minerals

Conditions

4. Project must obtain the certification of Green Mining or Corporate Social Responsibility from the Department of Primary Industries and Mines (CSR-DPIM) or other international standards approved by the Board within two years from the deadline for full operation.

5. Project must obtain Mining 4.0 certification from the Department of Primary Industries and Mines, or other international standards approved by the Board within two years after the deadline for full operation. If the project fails to comply the condition, the corporate income tax exemption will be withdrawn for one year.

6. Project must have a real-time monitoring and reporting system for environmental impacts in place within two years of the deadline for full operation. If the project fails to comply with the condition, the corporate income tax exemption will be withdrawn for one year.

7. In case of the same juristic person continued mining after the prospecting of targeted potential minerals, the costs incurred by the mineral prospecting with the concession certificate endorsed by the Department of Primary Industries and Mines, can be included for the calculation of corporate income tax exemption.

8. Existing activities, regardless of whether they are BOI-promoted or not, may apply for incentives under the Smart and Sustainable Industry Measure, the conditions 4-6 must be fulfilled before the full operation deadline.

1. Project must obtain a mineral dressing license or a metallurgy operations license or other licenses from the Department of Primary Industries and Mines before applying for investment promotion.

2. Project must involve activities related to targeted potential minerals such as rare earths, precious metals, alkali metals, quartz, potash and other minerals specified by the National Mineral Management Policy Commission (except industrial stones for the construction industry).

Incentives

Activities

Conditions

3. Project must obtain the certification of Green Mining or Corporate Social Responsibility from the Department of Primary Industries and Mines (CSR-DPIM) or other international standards approved by the Board within two years from the deadline for full operation.

4. Project must obtain Mining 4.0 certification from the Department of Primary Industries and Mines, or other international standards approved by the Board within two years after the deadline for full operation. If the project fails to comply the condition, the corporate income tax exemption will be withdrawn for one year.

5. Existing activities, regardless of whether they are BOI-promoted or not, may apply for incentives under the Smart and Sustainable Industry Measure, the conditions 3-4 must be fulfilled before the full operation deadline.

Materials Industry

5.2 Manufacture of materials

5.2.1 Manufacture of advanced or nano materials or products produced from advanced or nano materials

5.2.1.1 Manufacture of advanced or nano materials or products produced from advanced or nano materials with the continued production process from advanced or nano materials within the same project

5.2.1.2 Manufacture of products produced from advanced or nano materials

5.2.2 Manufacture of glass or ceramic products

5.2.2.1 Manufacture of special quality glass products Project must have melting and/or annealing process.

Incentives

5.2.2.2 Manufacture of glass products Project must have melting and/or annealing process. B

5.2.2.3 Manufacture of ceramic products (except earthenware and ceramic tiles)

5.2.3 Manufacture of fire-resistant materials or heat insulation (except aerated, and lightweight brick)

5.2.4 Manufacture of gypsum board or gypsum products and cements

5.2.4.1 Manufacture of gypsum board or gypsum products

5.2.4.2 Manufacture of cements

Project must have forming, firing and/or annealing process.

5.2.5 Manufacture of construction materials and pre-stressed concrete for public utilities

1. Project must use a clean technology or green technology as approved by the Board, such as

1.1 Carbon capture and storage (CCS) and/ or carbon capture and utilization (CCU) technology

1.2 Using renewable energy in the production process (except solar energy)

2. In case of existing projects apply for the Smart and Sustainable Industry Measure, the projects shall be eligible only for Environmental Impact Mitigation on greenhouse gas mitigation.

Project must be located in the Southern Border Provinces and Special Economic Zones (SEZ). A2

Targeted core technology development for materials industry

5.3 Targeted core technology development for materials industry

5.3.1 Advanced materials technology development

1. Target technology development procedures shall be used as a base for the manufacturing process or service provision in the target industry as approved by the Board.

2. There must be a technology transfer with an educational institution or research institute as approved by the Board, such as Technology Research Consortium.

A1+ (10 years with no limit on the corporate income tax exemption)

Activities

5.3.2 Nanotechnology development

Steels and Irons Industry

5.4 Manufacture of steels and irons

5.4.1 Manufacture of up-stream steels, i.e., Pure Molten Irons, Pig Irons, Sponge Irons, Direct Reduction Irons (DRI) and Hot Briquetted Irons (HBI)

5.4.2 Manufacture of intermediate steels, i.e., Slabs, Billets and Blooms

5.4.2.1 Manufacture of intermediate steels, i.e., Slabs, Billets and Blooms with continuous production process from manufacturing of intermediate steels within the same project

5.4.2.2 Manufacture of other intermediate steels, i.e., Slabs, Billets and Blooms

5.4.3 Manufacture of down-stream steel

Conditions Incentives

1. Target technology development procedures shall be used as a base for the manufacturing process or service provision in the target industry as approved by the Board.

2. There must be a technology transfer with an educational institution or research institute as approved by the Board, such as Technology Research Consortium.

(10 years with no limit on the corporate income tax exemption)

5.4.3.1 Manufacture of high tensile strength steels The value of Ultimate Tensile Strength (UTS) of the products must exceed 700 MPa.

5.4.3.2 Manufacture of downstream steels with continuous production process from manufacturing of upstream and intermediate steel within the same project

5.4.3.3 Manufacture of long steels products for industrial use i.e. steel wire rods, wires, shafts and bars

Project must have metal forming process.

5.4.10 Coil center

5.4.11 Manufacture of metal products including metal parts

Project shall not eligible for machinery import duty exemption.

5.4.11.1 Manufacture of products from metal powder Project must have additive manufacturing and/ or sintering process.

5.4.11.2 Manufacture of ferrous metal products or ferrous metal parts

Project must have metal forming process continuing from iron/steel casting process (using induction furnace) or iron/steel forging process, e.g. machining and stamping within the same project.

5.4.11.3 Manufacture of metal products or metal parts from 3D printer

5.4.11.4 Manufacture of Non- ferrous metal products including Nonferrous metal parts

5.4.11.5 Manufacture of other metal products including other metal parts

5.4.12 Surface treatment or anodized surface treatment (except coating or coloring treatment for a decoration purpose)

Plating, Coating, modifying or changing the surface using Advanced Technologies

5.4.12.2 Plating, Coating, modifying or changing the surface using Basic Technologies

Project must have metal forming process continuing from pressing, pulling, casting or forging of Nonferrous metal within the same project.

Project must have metal forming process such as machining, stamping, and bending.

Project must have a chemical process and/or a electrical process for plating, coating, modifying or changing the surface.

5.4.13 Heat Treatment Cyanide is prohibited in the process of heat treatment.

5.4.14 Manufacture and fabrication of metal products for industry or platform repair for petroleum industry

5.4.14.1 Manufacture and fabrication of metal products for industry

Platform repair for petroleum industry

Project must have engineering design.

5.4.15 Manufacture of metal platform for construction or fabrication industry Project must be located in the Southern Border Provinces and Special Economic Zones (SEZ).

Section 6 Chemical and Petrochemical Industry

Chemical Petrochemical and Plastic Industries

6.1 Manufacturing of chemical

6.1.1 Manufacture of Hydrogens

6.1.1.1 Manufacture of Hydrogens, and its related products such as Green Ammonias from Water via Renewable Energy

6.1.1.2 Manufacture of Hydrogens via Hydrocarbons or Fossil Fuels

1. Project must have electrolysis of water.

2. Project must use renewable energy such as solar energy or wind energy without emit carbon dioxide from process.

Project must use carbon capture and storage (CCS) and/or carbon capture and utilization (CCU) technology.

6.1.2

6.1.3

6.2

1. Manufacture of substances contributing to global warming that Thailand is obliged to reduce or stop using in compliance with international agreements shall not be promoted.

2. Project with only mixing, dilution or phase transition process shall not be promoted.

1. Manufacture of the following chemical products shall not be promoted.

1.1 Consumer chemical products such as paints, cleaning liquids, automotive lubricants, mixed chemical fertilizers, pesticides, and insecticides

1.2 Construction chemical products such as tile adhesive and concrete admixture

1.3 Substances contributing to global warming that Thailand is obliged to reduce or stop using in compliance with international agreements

2. Project with only mixing, dilution or phase transition process shall not be promoted.

6.3.1

6.3.2

Manufacture of chemical fundamental fertilizers

Manufacture of other chemicals

Manufacturing of chemical products for industry

6.3 Manufacture of petrochemical products

Oil refinery

Natural gas separation plants

Activities

6.4.4 Manufacture of Aseptic plastic packaging

6.4.4.1 Manufacture of Aseptic plastic packaging certified by clean room standard

Project must be certified by clean room standard such as ISO 14611 Class 7 (Clean Room), Federal Standard 209 E Class 10000 or an equivalent international standard before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.4.4.2 Manufacture of Aseptic plastic packaging which product properties are certified by relevant standards

1. Project must have hygienic production process.

2. Product must be certified by international standards such as Global Food Safety Initiative (GFSI), British Retail Consortium Global Standard (BRCGS) or an equivalent international standard before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.4.5 Manufacture of antistatic Plastic Packaging

Project must be certified by clean room standard such as ISO 14611 Class 7 (Clean Room) or Federal Standard 209 E Class 10000 before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.4.6 Manufacture of plastic packaging with other special properties

1. Manufacture of plastic packaging in the target group to be reduced or eliminated according to “Thailand's roadmap on plastic waste management” stipulated by the Ministry of Natural Resources and Environment shall not be promoted.

2. Project must have plastic forming process.

3. Product properties must be certified by an agency approved by the Board or certified by international standards.

6.4.7

6.4.7.1 Manufacture of recycled plastic pellets with properties equivalent to virgin plastic pellets including related products under the same project

1. Product must have properties equivalent to virgin plastic pellets which are certified by an agency approved by the Board or certified by international standards.

2. Project must use domestic plastic scraps as raw materials.

Manufacture of recycled plastic pellets including related products under the same project

6.4.7.2 Manufacture of recycled plastic pellets including related products under the same project

6.4.8 Manufacture of smart packaging and/ or parts

6.4.8.1 Manufacture of active packaging and/or parts

1. Project must use plastic scraps at least 70 percent of the total plastic raw materials (by weight).

2. Project must use domestic plastic scraps as raw materials.

1. Product must have properties to interact between the package and the product inside and/or external environment in order to prolong shelf life and/or maintain quality or property of the product inside.

2. Project must have a process to produce substances with the properties in Item 1, such as antimicrobial and oxygen scavenger.

3. In the case of smart packaging, the project must have a package molding process.

4. Product properties must be certified by an agency approved by the Board or certified by international standards.

6.4.8.2 Manufacture of intelligent packaging and/or parts

1. Product must have the properties to indicate the quality of the products or warn of anticipated problems showing on the package or through communicating with users (excluding Radio Frequency Identification: RFID)

2. Project must have a process to produce substances with the properties in Item 1 such as thermochromic and photochromic ink.

3. In the case of smart packaging, the project must have a package molding process.

4. Product properties must be certified by an agency approved by the Board or certified by international standards.

6.4.8.3 Manufacture of smart packaging and/or parts from substances that create intelligent features

Project must include the molding process for smart packaging and/or parts.

6.5 Manufacture of pulp or paper

6.5.1 Manufacture of hygienic pulp or hygienic paper

Project must be certified by clean room standard such as ISO 14611 Class 5 (Clean Room), Federal Standard 209 E Class 100 or an equivalent international standard before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.5.2 Manufacture of specialty pulp or specialty paper

Project must be certified by international standards such as US-FDA, GMP, or Food Grade before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.5.3 Manufacture of recycled pulp

6.5.3.1 Manufacture of recycled pulp including related products under the same project which use only domestic paper scraps for recycled pulp production.

6.5.3.2 Manufacture of recycled pulp including related products under the same project which use import paper scraps for recycled pulp production.

6.5.4 Manufacture of environmental-friendly pulp including related products under the same project

In case of manufacture product from continual process within the same project, project must use recycled pulp (self-produced) at least 80 percent of the total raw materials (by weight).

In case of manufacture product from continual process within the same project, project must use recycled pulp (self-produced) at least 80 percent of the total raw materials (by weight).

Project must be certified by international standards concerning environmental friendliness such as Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI), and Carbon Footprint Reduction before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.6

6.6.1 Manufacture of products from hygienic pulp or paper certified by clean room standard

Project must be certified by clean room standard such as ISO 14611 Class 5 (Clean Room), Federal Standard 209 E Class 100 or an equivalent international standard before exercising the incentive of corporate income tax exemption and before the full operation deadline.

6.6.2 Manufacture of products from hygienic pulp or paper which product properties are certified by relevant standards

1. Project must have hygienic production process.

2. Product must be certified by international standards such as Global Food Safety Initiative

Manufacture of products from pulp or paper

(GFSI), British Retail Consortium Global Standard (BRCGS) or an equivalent international standard before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Project must use biodegradable plastic for coating process.

1. Project must include an engineering design process such as special load-bearing capacity or shockproof capacity to produce paper and/ or high- performance paper products.

2. Product properties must have greater performance compare to Thailand Industrial Standard and certified by an agency approved by the Board or certified by international standards.

1. Product must use recycled pulp at least 80 percent of the total raw materials (by weight).

2. Project must have a molding process for the manufacture of products from recycled paper.

1. Product must use environmental-friendly raw materials which must be certified by international standards concerning environmental friendliness such as Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI), and Carbon Footprint Reduction.

2. Project must have a molding process for the manufacture of products from environmental friendly paper.

Project must be located in the Southern Border

6.6.3 Manufacture of paper products coated with bio-plastics

6.6.4 Manufacture of paper and/or highperformance paper products

6.6.5 Manufacture of products from recycled pulp or paper

6.6.6 Manufacture of products from environmental friendly pulp or paper

6.6.7 Manufacture of products from pulp or paper such as paper boxes

Provinces and Special Economic Zones (SEZ).

Section 7 Public Utilities

In case of, production of electricity from solar energy, must have capacity of solar cell not less than 200 kilowatts at each power distribution point.

1. Unwanted materials in the project must be generated from domestic sources only.

2. Project must have separation or processing of unwanted materials using modern technology, as approved by the Board.

3. Project must be located in an industrial estate or promoted industrial zone.

1. Unwanted materials in the project must be generated from domestic sources only.

2. Project must have separation or processing of unwanted materials using modern technology as approved by the Board.

3. Project must receive a permit of factory license no. 105 i.e. sorting or sewage landfill factory of unwanted which type and qualification defined in Factory Act.

7.1.10 Sorting/Separation Service of Unwanted Materials

1. Unwanted materials in the project must be generated from domestic sources only.

2. Project must have separation or processing of unwanted materials using modern technology, as approved by the Board.

3. Project must receive a permit of factory license no. 105 i.e. sorting or sewage landfill factory of unwanted which type and qualification defined in Factory Act.

4. Project must have capital investment (excluding cost of land and working capital) of not less than 200 million baht.

7.1.11 Manufacture of Refuse Derived Fuel

1. Project must be located in industrial estate or promoted industrial zone, except project which does not use thermal in smelting or burning process.

2. Unwanted materials in the project must be generated from domestic sources only.

3. Project must have modern production process as approved by the Board.

7.1.12 Waste treatment or disposal

In case of project use landfill method, only hazardous waste treatment shall be promoted and project must receive approval of environmental impact assessment from the Office of Natural Resources and Environmental Policy and Planning (ONEP) before applying submitted investment promotion application.

Real estate development for industrial use

7.2 Real estate development for industrial use

7.2.1 Industrial zone or industrial estate

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project in Bangkok and Samut Prakan are not eligible for promotion.

3. Total land area of the project must not be less than 500 rai.

4. Factory-designated area must not be less than 60 percent and not more than 75 percent of the total area, except projects with a total area of over 1,000 rai, whose factory-designated area must be approved by the Board

Activities

Conditions

5. Other conditions as specified by the Board as follows:

5.1 Standard of main road.

• In case of total land area of the project is over 1,000 rai, the road must have 4 lanes of not less than 30 meters wide, including road surface of not less than 14 meters wide, traffic island and pavement of not less than 2 meters wide each side and road shoulder or surface wide enough for an emergency stop.

• In case of total land area of the project is over 500 and up to 1,000 rai, the road must have 2 lanes with road not less than 20 meters wide, including road surface of not less than 7 meters wide and pavement of not less than 2 meters wide each side and a road shoulder or surface wide enough for an emergency stop.

5.2 The minor road must have a surface of not less than 8.5 meters wide and a shoulder of not less than 2 meters wide each side.

5.3 Wastewater treatment must be suitable for wastewater characteristics and according to legal effluent standards. Projects must have a post-treatment effluent pool.

5.4 Wastewater discharge system must be completely separate from rainwater discharge system.

5.5 Project must have an appropriate system of collection and elimination of garbage, as approved by the Board.

5.6 Factories located in industrial zones must be according to target industries, and not on the list of forbidden industries, specified in the environmental impact assessment report approved by the Expert Review Committee of the Office of Natural Resources and Environmental Policy and Planning (ONEP).

Incentives

Activities

7.2.2 Smart industrial estate or industrial zone

Conditions

5.7 The zone must provide factories located in the zone with sufficient public utilities, electricity, water, telephone service and post office.

5.8 The zone must develop about 25 percent of its total land area, or as approved by the Board, for public utility services within 2 years from the date of investment promotion certificate issuance

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must provide all of the 5 smart systems as following i.e. Smart Facilities, Smart IT, Smart Energy, Smart Economy along with other smart system at least 1 the following i.e. Smart Good Corporate Governance, Smart Living and Smart Workforce.

3. Project must receive approval from the jointcommittees from Industrial Estate Authority of Thailand and Thailand Board of Investment before submitting an investment promotion application.

4. Total land area of the project must not be less than 250 rai.

5. Factory area must not be less than 60 percent and not over 75 percent of the total land area. An exception is given to business with over 1,000 rai of land, conditions of which shall be in conformity with the approval of the Board.

6. Other conditions, either operate by project owner or provide by project owner, as follows:

6.1 Standard of main road:

• In case the land area is over 1,000 rai, there must be a 4-lane road with not less than 30-meter right-of-way, 14-meter surface, as well as traffic island and pavement of not less than 2 meters in width on each side. Road shoulders must be wide enough to accommodate car parking in case of emergency.

Incentives

Activities

Conditions

• In case of total land area of the project is over 250 and up to 1,000 rai, the road must have 2 lanes with road not less than 20 meters wide, including road surface of not less than 7 meters wide and pavement of not less than 2 meters wide each side and a road shoulder or surface wide enough for an emergency stop.

6.2 Feeder road standard: Road surface must not be less than 8.50 meters with road shoulders of not less than 2 meters in width on each side.

6.3 Wastewater treatment system must be appropriate for wastewater quality and in conformity with wastewater standard as prescribed by law. Treated wastewater storage pond must also be available.

6.4 Wastewater discharge system must be completely separate from rainwater discharge system.

6.5 Appropriate waste collecting, storage, and disposal system as approved by the Board.

6.6 Factories using the area must be in conformity with the targeted industries and prohibited industries as stipulated in the environmental impact assessment report approved by the committee of experts of the Office of Natural Resources and Environmental Policy and Planning

6.7 Project must provide public utility systems namely electricity, water supply and tap water, telephone, and postage service sufficient for factories in the industrial area.

6.8 Project must arrange for land improvement for about 25 percent of the total area or for the area as approved by the Board in order that public utilities shall be ready for service within 2 years from the date of promotion certificate issuance.

Incentives

Activities

7.2.3 Specific Industrial Estates

7.2.3.1 Food innovation industrial zone

Conditions

7. Project must be fully operated as approved by the Board within 5 years after its first income.

8. In case project is located in Eastern Economic Corridor (EEC), project shall receive a 50 percent reduction from the normal rate of corporate income tax on the net profit derived from the investment for a period of 5 years counting from the end of the corporate income tax exemption.

Incentives

7.2.3.2 Science and Technology Park

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must be located in the areas approved by The Ministry of Higher Education, Science, Research and Innovation and the Office of the Board of Investment.

3. Project must have the science, technology and innovation infrastructure ready to support commercial R&D such as operational R&D laboratories, pilot plants, production trial areas, market testing areas (Living lab), and space for rent for the private sector to establish R&D and innovation center.

4. Project must have a central lab with equipment and apparatus necessary for R&D and innovation activities, as well as stationed technicians to support the private sector in conducting R&D and innovation activities.

5. Project must provide facilities such as conference room, seminar room, communication, systems, and electrical backup system.

6. Project must have appropriate wastewater and sewage treatment system in accordance with the regulation.

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must have an Incubation Center.

3. Project must have a modern system for both domestic and international communication and telecommunication.

Activities

7.2.3.3 Gem and jewelry industrial zone

Conditions

4. Project must have a continuous electricity backup system.

5. Project must have other facilities as approved by the Board.

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. The total area must not be less than 100 rai.

3. Area for operations related to gems or jewelry must not be less than 40 percent of the total area.

4. Projects must provide appropriate security systems.

5. Projects must have meeting rooms, exhibition halls and business centers.

Incentives

7.2.3.4 Logistics Park

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. The total area must not be less than 200 rai and the project must invest in establishing a warehouse for lease or sale with a total area of not less than 50,000 square meters.

3. Project must be located either within 50 kilometers of a port, an airport, a customs checkpoint and an inland container depot (ICD) or in a Free Zone.

4. Project must designate some or the entirely of its area as a Free Zone.

5. Project must have a station to load and unload containers, or a truck terminal and a container depot that can handle at least 50 containers.

6. Project must install main telecommunication infrastructure that provides hi-speed communications that link the logistics park to domestic and international communication hubs.

7.2.3.5 Aircraft or aerospace industrial zone or industrial estate

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. The total area must not be less than 100 rai.

3. Projects must allocate some or all of its area for bonded warehouse or free zone.

4. Project must have an area for aircraft and parts maintenance and repair centers.

Activities

Conditions

5. Project must have sufficient public utilities and facilities such as roads, rainwater drainage and flood prevention systems, waterworks, wastewater treatment system, telecommunications and electricity systems, fire protection system, industrial waste management system and an appropriate security system as approved by the Board.

1. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

2. Project must not be located in Bangkok and Samut Prakan provinces.

3. Project must have an area of not less than 200 rai. The area for the industrial operation shall not be less than 60% and not more than 75% of the total area.

4. Project must have areas for operation facilities in the agricultural industry; agricultural processing; food processing; activities utilizing agricultural products, by-products, agricultural scraps or wastes as main raw materials. The area shall also include scientific and technological support and personnel development services in a proportion of not less than 80% of the total area for the operation facilities.

5. Project is required to have the following services and facilitations:

• Laboratory/testing facilities

• Institutions for training or developing agricultural or food knowledge

• Basic utilities which are suitable and standardized or as per details approved by the Board

Incentives

7.2.3.6 Agri-food industrial zone or industrial estate

7.2.4 Building development for industrial plant and warehouse Project must be located in Southern Border Provinces and Special Economic Zone. A2

Digital, Creative Industries, and High Value Service Investment Promotion Division 4

Section 8 Digital Industry

Activities

Digital Industry

8.1 Development of software, digital platform or digital content

Conditions

1. The minimum investment capital of each project must not be less than 1,500,000 baht per year calculated on the basis of the expenditure on salaries for Thai information technology personnel additionally employed after applying for investment promotion.

2. Project must have development process of software, digital platform or digital content in Thailand as stipulated by the Office.

3. Project is allowed to utilize the existing or used machinery.

4. The investment promotion of this activity does not include the retail and wholesale of all types of products.

5. The corporate income tax exemption cap accounts for 100 percent of the actual expenditure in the year of application for the incentive as follows:

• Expenditure on salaries for Thai information technology personnel additionally employed in comparison with Thai information technology personnel employed before the submission date of application for investment promotion.

• Expenditure on the information technology development related training course to develop Thai personnel’s skills.

• Expenditure on the operation to acquire the standard quality system certificate ISO 29110 or CMMI from Level 2 or other equivalent international standards.

Incentives

Activities

8.2 Digital Infrastructure

8.2.1 Data center

Conditions Incentives

1. Project must provide complementary service for customers located in project such as server co-location, managed service, customer’s server backup service, disaster recovery service (DRS), Data Hosting.

2. Area of data center must not be less than 3,000 square meters.

3. Project must have a main hi-speed telecommunication system linking the data center with domestic and international telecommunication centers for at least 4 systems. The domestic telecommunication system must have a speed of at least 10 Gbps each, for at least 3 systems, and the total speed of the whole system must be at least 60 Gbps.

4. Project must be able to service clients during maintenance or during equipment replacement in the system (concurrently maintainable).

5. Project must have a “Continuous Rating” generator, which is capable of supporting the entire electricity needs of the Data Center, with a backup generator that can support the need for electricity when one of the generators does not function properly.

6. Project must have equipment or backup system such as UPS, IT Cooling and UPS Cooling. This system or equipment needs to be able to function immediately after a main system fails to function properly and this must ensure the failure in the main system does not affect service.

7. Project must have backup independent distribution paths in electricity distribution system.

8. Project must have a failure prevention system to prevent risks from damage or any malfunction in any equipment.

9. Project must have a highly efficient air conditioning system, with backup system.

10. Project must have fire prevention system for the entire area.

8.2.2

Activities

8.2.3

8.3.1

Conditions

11. Project must have a 24-hour security system.

12. Project be certified with ISO/IEC 27001 (data center) before exercising the incentive of corporate income tax exemption and before the full operation deadline.

1. Project must be located in at least 2 data centers in Thailand that are certified with ISO/IEC 27001.

2. Project must have connection among all related data center with speed of at least 10 Gbps for each connection, with backup connection at the same speed.

3. Project must be certified with ISO/IEC 27001 (cloud security) and ISO/IEC 20000-1 (cloud service) before exercising the incentive of corporate income tax exemption and before the full operation deadline.

Project must obtain a license for international highspeed marine communication circuits from the Broadcasting Commission (BC) and the Office of The National Broadcasting and Telecommunications Commissions (NBTC) before applying for the promotion.

Incentives

1. There must be investment in or providing of basic public utility such as high speed fiber optic communication system, uninterruptible power supply, air conditioning system, fire suppression and accident prevention systems.

2. There must be incubation plan for innovation development as approved by the Board.

3. There must be ecosystem creating plan or creation of technology community, as well as the provision of Maker Space or Fabrication Laboratory for development of Prototype.

4. There must be employment of mentor to provide advice on business operation and innovation development.

5. The service area must not be less than 1,000 square meters.

Cloud service

International high-speed marine communication circuits

8.3 Digital ecosystem supported business

Innovation park

Activities

8.3.2 Maker space or fabrication laboratory

Conditions Incentives

1. There must be space provided as laboratory for development of innovation or prototype.

2. There must be basic tools or equipment for prototype development such as CNC Machine, 3D Printer, Water jet, Tooling, Software Tools for development of artificial intelligence, Petri dish and chemical mixing equipment.

3. There must be mentor to provide advice for development of innovation or prototype.

4. There must be public utilities in the project such as high speed fiber optic communication system, uninterruptible power supply, air conditioning system, fire suppression and accident prevention systems.

8.3.3 Co-working space

1. The service area must not be less than 2,000 square meters.

2. The investment (excluding cost of land and working capital) must not be less than 10 million baht.

3. There must be management elements i.e., Co-Working Management, Membership Management System, and Supporting Management.

4. There must be provision of basic tools or equipment for servicing such as office equipment, computer, printer.

5. There must be basic public utility in the project such as high speed fiber optic communication system, uninterruptible power supply, air conditioning system, fire suppression and accident prevention systems.

Smart City Development

8.4 Smart City Development

8.4.1 Smart City Area Development

1. Shares must be held by Thai nationals no less than 51 percent of the registered capital.

2. Project must provide the communications infrastructure to support smart systems, such as fiber optic and public Wi-Fi

Activities

8.4.2 Smart city system development

Conditions

3. Project must provide smart environment system and at least one of the following six systems, including smart mobility, smart people, smart living, smart economy, smart governance, and smart energy.

4. Project must provide the data storage and data management system connecting to open data platform.

5. The applicants must be approved by the Board or agencies responsible for smart city development before applying for investment promotion.

6. Project must set out and follow KPIs in line with area development targets.

7. Project must organize public hearing from local communities and propose public investment plan.

8. Project located in the Eastern Economic Corridor (EEC) area shall be entitled to 50 percent corporate income tax deduction for a period of 5 years as from the day the corporate income tax exemption period ends.

1. Project must develop, install, and provide services in one or more aspects of smart city system as stipulated by the Board, such as smart mobility, smart people, smart living, smart economy, smart governance, smart energy, and smart environment.

2. Project must be part of a smart city development project approved by the Board or agencies responsible for smart city development.

3. Project located in the Eastern Economic Corridor (EEC) area shall be entitled to 50 percent corporate income tax deduction for a period of 5 years as from the day the corporate income tax exemption period ends.

Incentives

Section 9 Creative Industry

Activities

Light Industries

9.1 Creative product design and development

1. Project must consist of 2 components, as follows:

1.1 Information system for design

1.2 Conceptual design and creation system

2. Project must consist of one of the following components:

2.1 Engineering design system

2.2 Prototype design creation and performance testing system

2.3 Prototype standard testing and user acceptance testing system

3. At least 70% of total employees in the project must be Thai.

4. Project must have expenses on salaries for research and development personnel of at least 1,500,000 baht per year and it must be new employment, or must have capital investment of at least 1 million baht (excluding cost of land, working capital, and vehicle).

1. Project must be located or expand in industrial estates or promoted industrial zones that have waste treatment and environmental protection and control systems according to section 30 of the announcement of the Ministry of Industry.

2. In case project is not located in condition 1., only expansion of existing projects will be permitted. Project must also have measures to reduce environmental impact.

Film Industry

9.15 Thai motion picture production

3. For the textile industry, digital printing businesses can be located in all areas.

4. Project applying for investment promotion under the Smart and Sustainable Industry Measure by reducing environmental impact is allowed to be located in the existing business area, whether the business is located in industrial estates or promoted industrial zones according to Section 30 of the announcement of the Ministry of Industry or not.

5. Environment-friendly technology must be used in all cases.

9.16 Motion picture support services

Project must have production of Thai motion picture such as production of movies, documentaries, television programs, animation but does not include production of a commercial.

Motion picture support services shall include production of movies, documentaries, animation and commercial, which have one of the following scopes of business:

1. Rental services of movie production equipment and/or movie production props must have main equipment/machinery such as camera, grip equipment, light set.

(with no limit on the income tax exemption)

Activities

9.17 Industrial zone for motion picture production (Movie Town)

Section 10 High Value Service

Conditions

2. Film development and duplication services must have main equipment/machinery such as film development machine, film duplication machine, digital film duplication machine.

3. Sound recording services must have main equipment/machinery such as digital sound recorder, digital sound editing machine, digital sound mixing machine.

4. Picture technical services must have machines and equipment capable of creating special pictures that are not possible with cameras. The service providers must have main equipment and machinery such as standard definition/high definition digital recorders, editing suites, digital compositing and special effect creation.

5. Coordination services for foreign movie production in Thailand must include coordinating with related government agencies for permits, location scouting and sourcing of staff and movie equipment.

6. Standardized movie production studio rental services for movie and television program production, both indoor and outdoor studio.

Must provide the following facilities as follows:

1. Standardized movie production and/or television program studio, both indoor and outdoor studio.

2. Post production service such as visual effect, computer graphic, animation and sound recording studio.

Activities Conditions

Professional services

10.1 Professional services

10.1.1 Trade and investment Support Office (TISO)

1. Annual selling and administrative expenses must be at least 10 million baht.

2. Must have a business plan and scope of business as follows:

Incentives

Incentives

Activities

Conditions

2.1 Monitoring and/or servicing to associated enterprises including office building or factory building, rental service for associated enterprise and lending to associated enterprises outside the scope of a treasury center and can be implemented under the exchange control laws such as

• Lending of foreign currency loans to associated enterprises in foreign countries

• Lending of Thai baht loans to associated enterprises in Thailand

• Lending of Thai baht loans to associated enterprises in Vietnam and countries bordering Thailand, with a requirement of using them for trading and investment in Thailand or in aforemenioned countries only

2.2 Advisory services on business operations, except those engaged in buying and selling securities, foreign currency exchange, accounting, legal, advertising, architectural and civil engineering businesses.

2.3 Information services on goods sourcing.

2.4 Engineering and technical services, excepts those related to architectural and civil engineering services.

2.5 Business activities related to machinery, engines, tools and equipment, manufactured by associated enterprise or officially authorized by manufacturer. Project must have at least one of the following scopes of business:

• Importing of wholesale

• Training Services

• Installation, maintenance and repair

• Calibration

2.6 Wholesaling of products manufactured in Thailand.

2.7 International business process outsourcing whose services are provided through telecommunication networks such as Administration Services, Finance &

Incentives

10.1.2

Conditions

Accounting Services, Human Resource Services, Sales & Marketing Services, Customer Services and Data Processing.

3. In case of offering loans to associated enterprises, the scope of servicing business must be services in the aspe cts that are not the loans specified in 2.1 or include at least one of those listed in 2.2-2.7.

4. Not eligible for imported duties on machinery exemption.

1. Must have business plans in providing services for associated enterprises as follows:

1.1 General management, business planning, and business cooperation

1.2 Procurement of raw materials and parts

1.3 Research and development of products

1.4 Technical support

1.5 Marketing and sales promotion

1.6 Human resources management and training

1.7 Financial advisory services

1.8 Economic and investment analysis and research

1.9 Credit management and control

1.10 Financial management service of the treasury center

1.11 International trade business

1.12 Lending to associated enterprises outside the scope of business in Item 1.10 which can be implemented under the exchange control laws such as

• Lending of foreign currency loans to associated enterprises in foreign countries

• Lending of Thai baht loans to associated enterprises in Thailand

• Lending of Thai baht loans to associated enterprises in Vietnam and countries bordering Thailand with a requirement of using them for trading and investment in Thailand or in aforementioned countries only

Incentives

International Business Center (IBC)

Activities

Conditions

1.13 Office building or factory building rental service for associated enterprise

1.14 Other supporting services as approved by the Board

2. The paid-up registered capital must not be less than 10 million baht.

3. Project must employ at least 10 skilled and knowledgable staff for IBC, exeptions are made for the cases when that business provides only financial management service of treasury center to its associated enterprises; in such cases at least 5 skilled and knowledgeable employees must be employed.

4. In case of operating international trade business and office building or factory building rental service for associated enterprise, at least 1 scope of business listed in 1.1-1.10 must be involved.

5. In case of offering loans to associated enterprises; at least 1 scope of business listed in 1.1-1.9 must be involved.

6. Only machinery used for R&D and training activities are eligible for import duty exemption.

7. Not eligible for import duty exemption on raw and essential materials used in the production for export.

10.1.3 International Procurement Office (IPO) 1. Project must be procurement of raw materials, parts, and components used in manufacturing industries.

2. Project must own or rent a warehouse and manage inventory with the IT-based system exclusive for warehouse management.

3. Project must have appropriate activities of merchandise procurement and management such as quality inspection and packaging.

4. Project must have several procurement resources, at least including a domestic resource.

5. Project must be domestic wholesale and/or overseas exports.

6. The paid-up registered capital must not be less than 10 million baht.

Incentives

Activities

10.2 Research and Development

Conditions Incentives

1. Project must have one of the following scopes of business:

1.1 Basic research refers to theoretical or operational activities that are conducted to explore new knowledge from basic natural phenomena and factual observation, without initially considering the application.

1.2 Applied Research refers to research that applies basic knowledge to solve or develop a concept for commercial purpose, with the objective to obtain a new product or process. Applied research includes related activities such as formula development, product design, and production process design for use at an industrial or commercial level.

1.3 Pilot development refers to activities performed to magnify a production scale from basic research and applied research. Pilot development is the development of a prototype and/or production process testing at a semi-industrial level to test the market and/or collect information on suitable conditions for a production process to use a product design at an industrial level.

1.4 Demonstration development refers to research and development that further develops results from a pilot development in order to test a production process at an industrial level to verify a technology and production process and to demonstrate the level of integrity of such process and viability on a commercial scale production in both quality control and cost estimation.

2. Project must provide detais and scope of research and development such as number of project’s researchers, academic profile, and work experience of researcher.

Activities

academies and institutions for higher education

Conditions Incentives

3. Project must have expenses on salaries for research and development personnel of at least 1,500,000 baht per year and it must be new employment, or must have capital investment of at least 1 million baht (excluding cost of land, working capital and vehicle).

1. The investment promotion of this activity does not include civil engineering and architectural design.

2. Project must have expenses on salaries for engineering design personnel of at least 1,500,000 baht per year and it must be new employment, or must have capital investment of at least 1 million baht (excluding cost of land, working capital and vehicle).

1. Project must have teach or train technical courses in specific fields, including design training center, as approved by the Board.

2. Project must have necessary equipment, vocational training lab, and others.

1. Project must be high-potential academy, which focuses on science and technology education.

2. Project must be located in the Eastern Economic Corridor (EEC) or other special economic zones for high-potential academies designated by the Cabinet.

3. Project must comply with rules and regulations as approved by the Board.

High-potential institutions for higher education

1. Project must be high-potential institutions for higher education. In case of foreign investment, projects must be approved by the Commission for High-potential Foreign Higher Education Institutions.

Conditions

2. Project must be located in the Eastern Economic Corridor (EEC) or other special economic zones for high-potential institutions for higher education designated by the Cabinet or other zones designated by the Commission for Highpotential Foreign Higher Education Institutions.

3. Project must comply with rules and regulations as approved by the Board.

Tourism Industry

10.8 Tourism promotion services

10.8.1 Ferry services or tour boat services or tour boat renting services

Bare-boat renting service for other to provide boat renting service shall not be promoted.

10.8.2 Tour boat port services Project must have facilitating equipment such as boat lifting equipment, inland boat deck, or boat garage for maintenance purpose.

10.8.3 Amusement parks

1. Project must have capital investment (excluding cost of land and working capital) of not less than 500 million baht.

2. Project details must be approved by the Board.

Incentives

10.8.4

10.8.5 Open zoo

1. Project must have capital investment (excluding cost of land and working capital) of not less than 30 million baht.

2. Performance details must be approved by the Board.

3. Project must have Thai nationality shareholders of not less than 51 percent of its registered capital.

1. Project must have capital investment (excluding cost of land and working capital) of not less than 500 million baht.

2. The area must not less than 500 rai.

3. Project details must be approved by the Board.

4. 15 percent of the total area must be allocated as green area and another 15 percent as car park.

10.8.6 Museum

1. Project must have capital investment (excluding cost of land and working capital) of not less than 30 million baht.

2. Project details must be approved by the Board.

Thai cultural centers or Thai art and craft centers

Activities

10.8.7 Race tracks

Conditions

1. Project must have capital investment (excluding cost of land and working capital) of not less than 1,000 million baht.

2. Project must obtain a standard certificate from the Federation International de L’Automobile (FIA) or Federation International de Motocyclisme (FIM) for the circuits race/track.

3. In case of other track varieties such as drag, drift, and supercross must be constructed according to comparable or international standards or guidelines.

4. Project must have appropriate preventive and controlling measures against environmental damage or against danger or trouble to neighbors.

10.8.8 Cable car Project must have capital investment (excluding cost of land and working capital) of not less than 100 million baht.

10.8.9 Cruise terminal

1. Project must have capital investment (excluding cost of land and working capital) of not less than 100 million baht.

2. Project must have facilities and utilities necessary to support the cruises and tourists such as passenger terminal, customs clearance space and immigration area.

Incentives

10.8.10 Man-made attractions

1. Project must have capital investment (excluding cost of land and working capital) of not less than 100 million baht.

2. Project details must be approved by the Board or related government agency.

3. Project must provide technology as a main service.

10.9 Activities to support tourism

10.9.1 Hotel

1. Project must have number of rooms and investment as follows:

1.1 In case of the hotel has not less than 100 rooms, a minimum investment per room (excluding land cost and working capital) must not be less than 2 million baht.

Activities

10.9.2 Convention hall

10.9.3 International exhibition center

Conditions

1.2 In case of the hotel has less than 100 rooms, a minimum investment (excluding land cost and working capital) must not be less than 500 million baht.

1.3 n case of the project apply for promotion under Measure for small and medium enterprise (SMEs). The hotel must provide at least 20 rooms but not less than 99 rooms, a minimum investment per room (excluding cost of land and working capital) must not be less than 1 million baht.

2. Project must be standardized approved by the Office of the Board of Investment

3. Project shall be eligible for the following incentive:

3.1 For project located in Krabi, Bangkok, Kanchanaburi, Khon Kaen, Chachoengsao, Chon Buri, Chiang Mai, Nakhon Pathom, Nakhon Ratchasima, Nonthaburi, Pathum Thani, Prachuab Khiri Khan, Phra Nakhon Si Ayuthaya, Phang-nga, Phetchanuri, Phuket, Rayong, Songkla, Samut Prakan, Samut Sakhon, Saraburi and Surat Thani, shall not be eligible for import duty on machinery exemption.

3.2 For projects located in other provinces

1. Total convention area must not be less than 4,000 square meters. Total area of the largest hall must not be less than 3,000 square meters.

2. Project must have suitable facilities and equipment.

3. Project’s blueprints must be approved by the Board.

1. Indoor exhibition area must not be less than 25,000 square meters.

2. Every hall must have a business meeting room.

Incentives

Logistics Industry

1. Project must include a warehouse with advanced technology and computerized systems such as Automatic Storage and Retrieval Systems (ASRS) and information technology support systems.

2. Project must have capital investment (excluding cost of land and working capital) of at least 1,000 million baht.

3. The following activities must be done within 3 years from the date of issuance of promotion certificate:

3.1 Project must utilize a data center or colocation in Thailand for data management.

3.2 Project must employ Thai personnel with bachelor degree and above in the fields related to science and technology such as engineering, artificial intelligence and data science at least 20 percent of the total project’s employment.

10.11.2

Activities

Conditions

3.3 Project must include data analytics or data management activities related to digital transactions in Thailand with substantial local team participation as approved by the Board.

3.4 Project must include an advanced digital training program such as Big Data and Data Analytics as approved by the Board.

3.5 Project must include research and development activities or a research and development co-operation program with Thai educational or research institutions as approved by the Board.

1. The paid-up registered capital must not be less than 10 million baht.

2. Project must provide a goods storage facility that is controlled by a modern computerized system.

3. Project must have capital investment (excluding cost of land and working capital) of at least 100 million baht.

4. The center must distribute goods to at least 5 countries and the proportion of income from the management fee of product that customers distribute abroad must be more than 50 percent of the total income.

1. The paid-up registered capital must not be less than 10 million baht.

2. Project must provide a goods storage facility that is controlled by a modern computerized system.

Incentives

International Distribution Centers (IDC)

10.11.3 Distribution Center (DC)

Procedures of Applying for BOI Promotion

In order to make the work of the Office of the Board of investment (BOI) faster and more efficient, so as to better facilitate promoted investors, the BOI has laid out procedures for applying and implementing promotion privileges.

Procedures for Investment Promotion Application

Study BOI information

Representatives/investors study BOI information via

1. Head Office (HQ) Regional Office or Overseas Offices of BOI

2. www.boi.go.th

Submit application

Applicant with eligible activities submit an application and supporting documents for consideration via e-Investment Promotion on www.boi.go.th

Except:

- Investment promotion applicants for performance improvements

- Investment promotion applicants for business transfer

- Investment promotion applicants

Project presentation

1 2 6

5 7

Official contacts the company’s representative/ investor to Schedule the presentation within 10 working days as from submission date.

Project evaluation and consideration

By responsible officials. Consideration time depends on the size of investment.

200 2,000 2,000

40 60 90

Notifies the resolution

BOI will be sent to the applicant within 7 days as from the resolution certifying date.

Promotion acceptance

Representatives/investors accept the resolution (acknowledge the consideration results) within 1 month as from the date of resolution notification by

1. submits promotion acceptance form via Promotion Certificate System on www.boi. go.th, In case of application was submitted via e-investment promotion system, the same username and password is required for login to e-certification promotion system.

Promotion certificate application

3 4 8

Representatives/investors submits the promotion certificate application form within 6 months as from the submitting date of Promotion Acceptance Form via

1. submits promotion acceptance form via Promotion Certificate System on www.boi.go.th, In case of application was submitted via e-investment promotion system, the same username and password is required for login to e-certification promotion system.

2. In case of Investment promotion applicants for business transfer was submitted the F GA CT 08 at Promotion Certificate Division, Head Office (HQ).

2. In case of Investment promotion applicants for business transfer was submitted the F GA CT 07 at Promotion Certificate Division, Head Office (HQ).

Promotion certificate application

BOI issues the operation start-up certificate within 10 working days as from the date the applicant submitted complete set of documents

In case of applying for promotion in paper form (According to the exception 2 ) must accept the resolutions 6 and submits the promotion certificate 7 via Promotion Certificate System directly

Investment Promotion Procedures and Required Document

1. Applicant with eligible activities submit an application via e-Investment Promotion on www.boi.go.th

Except:

- Investment promotion applicants for performance improvements

- Investment promotion applicants for business transfer

- Investment promotion applicants for Grassroots Economy

2. Promotion Acceptance

2.1 Applicants must submit the Investment Promotion Certificate Acceptance Form (F GA CT 07) within one month after the date of receiving notification.

2.2 In case the applicants can not submit the Investment Promotion Certificate Acceptance Form (F GA CT 07) within the due date, the request form for Promotion Acceptance Expansion (F GA CT 01) can be submitted 3 times, 1 month each time, according to the BOI announcement No.1/2553 regarding the “Time Frame for Investment Promotion Procedures.

3. Investment Promotion Certificate Issuance

3.1 Applicants must submit the Promotion Certificate Application Form (F GA CT 08) within 6 months counting from the date of promotion acceptance. The OBOI will issue the investment promotion certificate within 10 working days, counting from the date on which the OBOI receives the complete promotion acceptance form and all supporting documents.

3.2 In case the applicants can not submit the Investment Promotion Certificate Acceptance Form (F GA CT 07) within the due date, the request form for Promotion Acceptance Expansion (F GA CT 01) can be submitted 3 times, 4 month each time, according to the BOI announcement No.1/2553 regarding the “Time Frame for Investment Promotion Procedures.”

1. Copy of audited financial statement (if any)

2. History and details of business

3. Pictures and/or Catalogue

4. Document showing the production process

5. Document showing the main machinery

6. Document showing the detail of measure (if any)

7. In case the project is conditioned under other special measures, evidences of compliance to such conditions must be attached on e-Investment Promotion

No required document

1. Promotion Certificate Application Form (F GA CT 08) with complete information

2. Document showing the transfer of funds from overseas (in the case of foreign investment)

3. Utility and Manpower Requirements Form (F GA CT 13)

4. Other evidence specified in the letter notifying the resolution (if any)

Special Measures 05

Investment Promotion Measure

in Special Border Economic Zones (SEZ)

The measure aims at establishing economic connections with neighboring countries and supporting the ASEAN Economic Community integration. Interested parties may apply for investment promotion under this measure with the following information:

Special

Border Economic Zones consist of areas in the following provinces:

Tak Province: 14 sub-districts in 3 districts

• 8 sub-districts in Mae Sot District: Mae Sot, Mae Tao, Tha Sai Luat, Phra that Pha Daeng, Mae Kasa, Mae Pa, Mae Ku and Mahawan

• 3 sub-districts in Phop Phra District: Phob Phra, Chong Kaep and Wale

• 3 sub-districts in Mae Ramat District: Mae Charao, Mae Ramat and Khane Chue

Mukdahan Province: 11 sub-districts in 3 districts

• 5 sub-districts in Mueang

Mukdahan District: Si Bun Rueang, Mukdahan, Bang Sai Yai, Kham

Ahuan and Na Si Nuan

• 4 sub-districts in Wan Yai District: Bang Sai Noi, Chanot, Wan Yai and Bong kham

• 2 sub-districts in Don Tan District:

Pho Sai and Don Tan

Sa Kaeo Province: 4 sub-districts in 2 districts

• 3 sub-districts in Aranyaprathet

District: Ban Dan, Pa Rai and Tha Kham

• 1 sub-district in Wattana Nakhon

District: Phak Kha

Trat Province: 3 sub-districts in Klong Yai District: Klong Yai, Had Lek and Mai Rut

Songkhla Province: 4 sub-districts in Sadao District: Sadao, Samnak

Kham, Samnak Taeo, and Pa dang

1

7 9 3 4

6 2

5

8 139 Investment Promotion Guide 2023 | This complimentary guide book is not for sale

Chiang Rai Province: 21 sub-districts in 3 districts

• 7 sub-districts in Chiang Khong District: Khrueng, Bun Rueang, Rim Khong, Wiang, Sri Don Chai, Sathan and Huay So

• 6 sub-districts in Chiang Saen District: Ban Saeo, Pa Sak, Mae Ngoen, Yo Nok, Wiang and Si Don Mun

• 8 sub-districts in Mae Sai District: Koh Chang, Ban Dai, Pong Ngam, Pong Pha, Mae Sai, Wiang Phang Kham, Si Mueang Chum and Huai Khrai

Nong Khai Province: 13 sub-districts in 2 districts

• 12 sub-districts in Mueang Nong Khai District: Khai Bok Wan, Nai Mueang, Ban Duea, Phra That Bang Phuan, Pho Chai, Phon Sawang, Mi Chai, Wiang Khuk, Si Kai, Nong Kom Ko, Hat Kham and Hin Ngom

• 1 sub-district in Sa Khrai District: Sa Khrai

Nakhon Phanom Province: 13 sub-districts in 2 districts

• 10 sub-districts in Mueang Nakhon Phanom District: Kurukhu, Tha Kho, Na Sai, Na Rat Cha Kwai, Nai Mueang, Ban Phung, Pho Tak, Nong Yat, Nong Saeng and At Samat

• 3 sub-districts in Tha Uthen District: Non Tan, Rammarat and Woen Phrabat

Kanchanaburi Province: 2 sub-districts in Mueang Kanchanaburi District: Kaeng Sian and Ban Kao

Narathiwat Province: 5 sub-districts in 5 districts

• 1 sub-district in Mueang Narathiwat District: Khok Khian

• 1 sub-district in Tak Bai District: Che He

• 1 sub-district in Yi-ngo District: Lahan

• 1 sub-district in Waeng District: Lo Chut

• 1 sub-district in Su-ngai Kolok District: Su-ngai Kolok

Incentives

Targeted Activities

8-year exemption of CIT with cap according to investment capital (13 targeted activities, and 5 special activities in the Special Economic Zones)

Additional 50% reduction of CIT for 5 years with a cap according to investment capital (only for 14 targeted activities)

General Activities

Additional 3-year CIT exemption (not exceeding 8 yearsin total) with a cap according to investment capital If the project is already granted 8-year CIT exemption, it is eligible for additional 50% reduction of CIT for a period of 5 years

Exemption of import duties on machinery

Exemption of import duties on raw materials used in production for export

10-year double deductions on the costs of transportation, electricity and water supply

25% deduction on the costs of installation or construction of facilities

Non-tax incentives

Remark: Incentives are provided under the investment promotion measures for border provinces in southern Thailand. Investment projects in Narathiwat will Eligible activities and their criteria will be relaxed according to conditions stipulated in the Investment Promotion Measure for Investment in SEZ.

13 Targeted activities in the Special Economic Zones

(1)

5 Special activities in the Special Economic Zones

(1) Activity 5.2.5 Manufacture of construction materials and pre-stressed concrete for public utilities

(2) Activity 5.4.15 Manufacture of metal platform for construction or fabrication industry

(3) Activity 6.4.2 Manufacture of plastic products for consumer goods (such as plastic packaging)

(4) Activity 6.6.7 Manufacture of products from pulp or paper such as paper boxes

(5) Activity 7.2.4 Building development for industrial plant and warehouse

Check the list of activities eligible for Investment promotion and more detail. Please see

Investment Promotion Measure in Special Border

Investment Promotion

Measures in the Eastern Special Development Zone (Eastern Economic Corridor: EEC)

In order to promote investment in the targeted activities in Chachoengsao, Chonburi and Rayong and to continuously encourage the private sector to take part in human resource development, research and development of technology and innovation. Interested parties may apply for investment promotion under this measure with the following information:

1. Projects must be among targeted activities in the Eastern Economic Corridor (EEC) which are the activities utilizing advanced technologies essential for increasing national competitiveness. These are the activities in Group A1, A2, A3, and A4. There is an exception for certain activities which are not eligible for the incentives as prescribed by the Office of the Board of Investment as follow:

- Activity 1.1.4 Deep sea fishery

- Activity 8.2.3 International high-speed marine communication circuits

- Activity 10.8.1 Ferry services or tour boat services or tour boat renting services

- Activity 10.10.2 Air transportation services

- Activity 10.10.3 Maritime transportation services

- Activity 10.10.4 Rail transport

2. Projects must be located in Chachoengsao, Chon Buri, and Rayong.

High-speed rail

Double-track railway

Motorway

Promoted zones for special activities

EECa : Eastern Airport City

EECi : Innovation Platform

EECd : Digital Park

EECmd : Medical Hub

EECg : Genomics Thailand

Chachoengsao

UTAPAO International Airport

143 Investment Promotion Guide 2023 | This complimentary guide book is not for sale

Chonburi Rayong

sattahip commercial ports

maptaphut port

Laemchabang Port

Don Mueang International Airport

Promoted industrial estate or industrial zone

Criteria and Conditions

Incentives:

Notes:

1. Projects operating in compliance with criteria for human resource development, research and technology, and location are eligible for additional corporate income tax benefits.

2. Projects located in EECa EECi EECd EECmd EECg EECtp or industrial estates/zones can choose to receive one of the additional corporate income tax privileges.

3. Projects receiving corporate income tax exemption over 8 years in total are not eligible for additional corporate income tax incentives under Section 35 (1).

4. Projects in group A1+ are eligible for up to 13 years of corporate income tax exemption benefits in total, while projects in groups A1A4 are eligible for up to 8 years of corporate income tax exemption benefits in total.

5. A corporate income tax reduction benefit will be granted for a maximum of 5 years.

Human Resource Development Criteria:

The project must collaborate with educational institutes in the specified formats such as Work-Integrated Learning (WiL), cooperative education, and dual vocational training program, or collaboration in developing Thai personnel in science and technology as approved by the Board. A collaboration plan of the student or university-student admission to vocational training must be submitted, presenting the number of students or university students of not fewer than 10% of the total number of employees in the project applying for investment promotion or not fewer than 40 persons, whichever is lower.

Research and Development of Technology and Innovation Criteria:

The project must have investments in or expenditures on research and development in technology and innovation either on its own, employing others domestically, or collaborating with foreign institutions. The total investments or expenditures must account for at least 1% of the total sales in the first 3 years or at least 200 million baht, whichever is less.

However, the number of students or university students admitted or vocational training or investment in or expenditures on research and development must not be used to apply for duplicating incentives under other measures.

In case of projects located in specific areas

1. In case projects are located in the Promoted Zones for Specific Industries in the Eastern Special Development Zone as follows:

EECa, Eastern Airport City

EECi, Innovation Platform

EECd, Digital Park

EECmd, Medical Hub

EECg, Genomics Thailand

EECtp, Tech Park Ban Chang

2. In case projects are located in the industrial estate or promoted industrial zone in the areas of Chachoengsao, Chon Buri and Rayong, additional incentives shall be granted for industrial area development.

Related Announcement

- Announcement of the Board of Investment No.17/2565: Investment Promotion Measures in the Eastern Special Development Zone (Eastern Economic Corridor: EEC) date December 8, 2022.

- Announcement of the Office of the Board of Investment No. Por. 4/2565: Activities Not Eligible for Rights and Benefits According to the Announcement of the Board of Investment Announcement No. 11/2565,

and

date December 16, 2022.

Investment Promotion Measure in the Economic Corridor

In order to promote investment in the targeted industry clusters in the Economic Corridor and to encourage the private sector to take part in human resource development including research and development of technology and innovation. Interested parties may apply for investment promotion under this measure with the following information:

Criteria and Conditions

1. Projects must be located in Economic Corridor specified as follow:

The Northern Economic Corridor (NEC- Creative LANNA) covers Chiang Mai, Chiang Rai, Lamphun, and Lampang

The Northeastern Economic Corridor (NeECBioeconomy) covers Nakhon Ratchasima, Khon Kaen, Udon Thani, and Nong Khai

The Central- Western Economic Corridor ( CWEC) covers Ayutthaya, Nakhon Pathom, Suphan Buri, and Kanchanaburi

The Southern Economic Corridor (SEC) covers Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat

2. Targeted activities in the targeted industry clusters for the Economic Corridor consist of activities in Group

A1+ , A1, A2, A3, and A4: NEC

Economic Corridor Provinces

Targeted Industries

• Agriculture and food

Northern

NeEC

Chiang Mai, Chiang Rai, Lamphun, and Lampang

CWEC SEC

Northeastern CentralWestern Southern

Nakhon Ratchasima, Khon Kaen, Udon Thani, and Nong Khai

• Digital

• Creative Industries

• Tourism and Wellness Tourism

• Agriculture and food

• Bio Industries

Ayutthaya, Nakhon Pathom, Suphan Buri, and Kanchanaburi

Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat

• Agriculture and food

• Electrical and Electronics

• Agriculture and food

• Bio Industries

• Tourism and Wellness Tourism

Please check the list of activities eligible for Investment promotion and more detail.

1. Projects operating in compliance with criteria for human resource development, research and technology, and location are eligible for additional corporate income tax benefits.

2. Projects located in Science and Technology Zones or industrial estates/zones can choose to receive one of the additional corporate income tax privileges.

3. Projects receiving corporate income tax exemption over 8 years in total are not eligible for additional corporate income tax incentives under Section 35 (1).

4. Projects in group A1+ are eligible for up to 13 years of corporate income tax exemption benefits in total, while projects in groups A1-A4 are eligible for up to 8 years of corporate income tax exemption benefits in total.

5. A corporate income tax reduction benefit will be granted for a maximum of 5 years.

Human Resource Development Criteria:

The project must collaborate with educational institutes in the specified formats such as Work-Integrated Learning (WiL), cooperative education, and dual vocational training program, or collaboration in developing Thai personnel in science and technology as approved by the Board. A collaboration plan of the student or university-student admission to vocational training must be submitted, presenting the number of students or university students of not fewer than 10% of the total number of employees in the project applying for investment promotion or not fewer than 40 persons, whichever is lower.

Research and Development of Technology and Innovation Criteria:

Research and Development of Technology and Innovation Criteria:

The project must have investments in or expenditures on research and development in technology and innovation either on its own, employing others domestically, or collaborating with foreign institutions. The total investments or expenditures must account for at least 1% of the total sales in the first 3 years or at least 200 million baht, whichever is less.

However, the number of students or university students admitted or vocational training or investment in or expenditures on research and development must not be used to apply for duplicating incentives under other measures.

In case of projects located in the areas

1. In case projects are located in areas as Science and Technology Parks, which are promoted or approved by the Board of Investment, incentives shall be granted according to the Investment Promotion Measure in areas as Science and Technology.

Check Science and Technology Parks, which are promoted or approved by the Board of Investment. Please see

2. In case projects are located in the industrial estate or promoted industrial zone in the Economic Corridor, additional incentives shall be granted for industrial area development.

Related Announcement

- Announcement of the Board of Investment No.18/2565: Investment Promotion Measure in the Economic Corridor date December 8, 2022.

- Announcement of the Board of Investment No.22/2565: Investment Promotion Measure in Areas as Science and Technology Parks date December 8, 2022.

Measure for Industrial Upgrades towards Smart and Sustainable Industry

By expediting the transitions to a smart and sustainable industry, the measure aims to sustainably stimulate the development and transformation of the Thai manufacturing and service sectors towards Industry 4.0.

Interested parties can learn more about the measure by reviewing the detailed information provided below:

1. Efficiency Enhancement Measure for Existing Projects

The measure applies to: The measure applies to:

(1) Existing activities in operation, whether BOI- or non-BOI-promoted projects, must operate under the scope of investment promotion at the time of application submission, except for some activities specified by the Office as ineligible for investment promotion under this measure.

(2) In the case of a BOI-promoted project applying for promotional incentives under this measure, the corporate income tax exemption benefits must have expired, or the project has not been granted corporate income tax exemption.

(3) The projects must have investment capital of at least 1 million baht excluding the cost of land and working capital.

Improvements are being made....

1.1 Measure to improve the efficiency in upgrading or replacing of machinery and automation

The applicants must submit an investment plan on machinery upgrading or replacing according to the stipulated.

(1) Adoption of automation system in the existing production line or service, the performance must comply with the specified indicator.

Activities that are not eligible to improve the efficiency in upgrading or replacing of machinery and automation

- Activity 2.2.2.2 Health rehabilitation center

- Activity 3.6 Manufacture of general automobile

- Activity 3.7

- Activity 3.8

Manufacture of motorcycles (except less than 248 cc engine displacement)

Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms (Only Plug-In hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV))

- Activity 5.2.4.2 Manufacture of cements

- Activity 5.4.10 Coil center

- Activity 8.3.3 Co-working space

- Activity 10.1.1 Trade and investment Support Office (TISO)

- Activity 10.1.2 International Business Center (IBC)

- Activity 10.1.3

International Procurement Office (IPO)

(2) Upgrading or replacing of non-automated machinery

(2.1) Adoption of modern non-automated machinery (including digitalized non-automated machinery) in efficiency enhancement to upgrade the work or management processes. The performance must comply with the specified indicator.

(2.2) Utilization of new version of machinery in the existing production technology/production line. The performance must comply with the specified indicator.

(2.3) Upgrading and replacing machinery to improve qualities of the existing products.

Activities that are not eligible to improve the efficiency in Upgrading or replacing of non-automated machinery

- Activity 3.7 Manufacture of motorcycles (except less than 248 cc engine displacement)

- Activity 3.8 Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms (Only Plug-In hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV))

- Activities under group B eligible for investment promotion by BOI announcement effective at the time of application submission.

Counting of Investment Value according to the efficiency in upgrading or replacing of machinery and automation. Investments/Expenditures

1. Investments or expenditures on machinery and equipment

2. Investments or expenditures on software, programs or information technology, renting/using cloud services or data centers

2.1 The investments or expenditures on software, program, or information technology integrated with machinery or equipment to control, oversee or support the manufacturing process.

2.2 Investments or expenditures on utilization of Artificial Intelligence (AI), machine learning or utilization of big data and data analytics

2.3 Investments or expenditures on software, program, or information technology systems for enterprise management:

• For software, program or information technology systems which are developed by domestic developers, certified by related agencies approved by the BOI

• For software, program or information technology systems which are not developed by domestic developers, who are certified by related agencies approved by the BOI, or are developed by foreign developers.

2.4 Expenditures on renting/using of cloud services or data centers

• In Thailand

• Overseas

Incentives

1. Exemption of machinery import duties

2. 3-year corporate income tax exemption with a cap of 50 percent of the investment capital (excluding cost of land and working capital on the enhancement). In this regard, the corporate income tax exemption of the revenue derived from the existing projects shall be granted.

In case that the automation system or robotics are used in the production line or service with a linkage or support to Thai automation industry not less than 30 percent of the value of upgraded machinery, the applicant shall be granted 3-year corporate income tax exemption with a cap equivalent to 100 percent of the investment capital (excluding cost of land and working capital on the enhancement).

3. The corporate income tax exemption period shall be started from the date of revenue derivation after the promotion certificate is issued and the operation start-up must be completed within 3 years as from the issuance date of the promotion certificate.

1.2 Measure to improve the efficiency by digital technology adoption

The applicants must submit an investment plan for adopting digital technology in the upgrading of operation process in order to enhance the production or service efficiency, in any of the following cases.

(1) Adopting software, program, or information system with systematic link inside the organization and partly outside the organization or both inside and outside the organization. The data link must have at least 3 functions for use in resource management to increase the efficiency of manufacturing or service.

(2) Applying artificial intelligence or AI, machine learning, and big data or data analytics.

(3) Utilizing software, program or information system for data linkage between the company’s system and the online system of public sector, e.g. a link with national e-payment system, etc. as approved by the Board of Investment. For cases 1 and 3, there must be investments or expenditures on software program or information system that are developed or modified by entrepreneurs in Thailand and certified by related agencies.

Activities that are not eligible for Measure to improve the efficiency by digital

- Activity 1.3.2.1 Manufacture or service of machinery and equipment of modern agricultural and modern agricultural system with own system or platform design and manufacture machinery and equipment in the project

- Activity 1.3.2.2 Manufacture or service of machinery and equipment of modern agricultural and modern agricultural system with own system or platform design

- Activity 1.3.2.3 Services related to modern agriculture

- Activity 1.4.6 Digital trade center for agricultural products

- Activity 2.2.2.2 Health rehabilitation center

- Activity 3.6 Manufacture of general automobile

- Activity 3.7

- Activity 3.8

Manufacture of motorcycles (except less than 248 cc engine displacement)

Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV) and BEV platforms (Only Plug-In hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV))

- Activity 3.18.2.3 Design and development of system or software related to satellites and ground stations

- Activity 3.21.2

Manufacture of simulation and virtual training system and parts and/or repair of simulation and virtual training system

- Activity 5.2.4.2 Manufacture of cements

- Activity 5.4.10 Coil center

- Activity 7.2.2 Smart industrial estate or industrial zone

- Activity 8.1

Development of software, digital platform or digital content

- Activity 8.2.1 Data center

- Activity 8.2.2 Cloud service

- Activity 8.3.3 Co-working space

- Activity 8.4.1 Smart city area development

- Activity 8.4.2 Smart city system development

- Activity 10.1.1 Trade and investment Support Office (TISO)

- Activity 10.1.2 International Business Center (IBC)

- Activity 10.1.3

- Activity 10.11.1

International Procurement Office (IPO)

Distribution centers with smart system

- Adopting software, program or information system with systematic link inside the organization and partly outside the organization or both inside and outside the organization.

- Utilizing software, program or information system for data linkage between the company’s system and the online system of public sector, e.g. a link with national e-payment system, etc. . as approved by the Board of Investment.

1. Investments or expenditures on software, program, or information system developed/modified by:

- Entrepreneurs in Thailand certified by related agencies.

- Entrepreneurs in Thailand which are not certified by related agencies or Overseas entrepreneurs

2. Rental or service fees for Cloud service or Data center

- In Thailand - Overseas

- Applying artificial intelligence or AI, machine learning, and big data or data analytics.

1. Investments or expenditures on

- Artificial Intelligence or AI

- Machine Learning

- Utilizing big data

- Data Analytics

2. Rental or service fees for Cloud service or Data center

- In Thailand

- Overseas

Incentives

1. 3-year corporate income tax exemption with a cap of 50 percent of the investment capital (excluding cost of land and working capital on the enhancement). In this regard, the corporate income tax exemption of the revenue derived from the existing projects shall be granted.

2. The corporate income tax exemption period shall be started from the date of revenue derivation after the promotion certificate is issued and the operation start-up must be completed within 3 years as from the issuance date of the promotion certificate.

1.3 Efficiency Enhancement Measure for Industry 4.0 Transformation

The applicants must submit an investment plan to enhance their efficiencies to achieve the Industry 4.0 transformation as approved by the National Science and Technology Development Agency (NSTDA). The projects must invest in machinery upgrades or replacements to enhance efficiency of their existing manufacturing or service process to achieve the Industry 4.0 transformation according to the prescribed criteria in production and enterprise processes including implementations of:

- Automation and Network Technology

- Data Analytics and Smart Operation

- Digital technology adoption

Activities that are not eligible for Measure for Industry

- Activity 2.2.2.2 Health rehabilitation center

- Activity 3.6

Manufacture of general automobile

4.0 Transformation

- Activity 3.7 Manufacture of motorcycles (except less than 248 cc engine displacement)

- Activity 3.8 Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms (Only Plug-In hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV))

- Activity 5.2.4.2 Manufacture of cements - Activity 5.4.10 Coil center

- Activity 8.3.3

- Activity 10.1.1

Co-working space

Trade and investment Support Office (TISO)

Activity 10.1.2 International Business Center (IBC)

- Activity 10.1.3 International Procurement Office (IPO)

Counting of Investment Value according to the Efficiency Enhancement Measure for Industry 4.0 Transformation. Investments/Expenditures

1. Investments or expenditures on machinery and equipment

2. Investments or expenditures on software, programs or information technology, renting/using cloud services or data centers

2.1 The investments or expenditures on software, program, or information technology integrated with machinery or equipment to control, oversee or support the manufacturing process.

2.2 Investments or expenditures on utilization of Artificial Intelligence (AI), machine learning or utilization of big data and data analytics

2.3 Investments or expenditures on software, program, or information technology systems for enterprise management:

• For software, program or information technology systems which are developed by domestic developers, certified by related agencies approved by the BOI

• For software, program or information technology systems which are not developed by domestic developers, who are certified by related agencies approved by the BOI, or are developed by foreign developers.

2.4 Expenditures on renting/using of cloud services or data centers

• In Thailand

• Overseas

Incentives

1. Exemption of machinery import duties

2. 3-year corporate income tax exemption with a cap 100 percent of the investment capital (excluding cost of land and working capital on the enhancement). In this regard, the corporate income tax exemption of the revenue derived from the existing projects shall be granted.

3. The corporate income tax exemption period shall be started from the date of revenue derivation after the promotion certificate is issued and the operation start-up must be completed within 3 years as from the issuance date of the promotion certificate.

1.4 Measure to improve the efficiency of energy conservation, alternative energy utilization, or environmental impact mitigation

The applicant must submit an investment plan of machinery replacement or upgrade for energy conservation, alternative energy utilization or environmental impact mitigation by implementing one of the followings.

(1) Invest in upgrading machinery to modern technology to reduce energy consumption at the stipulated ratio.

(2) Invest in upgrading machinery to utilize alternative energy at the stipulated ratio to the total energy consumption.

(3) Invest in upgrading machinery to mitigate environmental impacts, namely reduction of waste,

(4) Invest in upgrading machinery to mitigate the environmental impacts to reduce greenhouse gas emission at stipulated ratios. The projects must be registered and certified for the amount of greenhouse gas emission by Thailand Greenhouse Gas Management Organization (Public Organization).

Activities that are not eligible for Measure to improve the efficiency of energy conservation, alternative energy utilization, or environmental impact mitigation

Activity 2.2.2.2 Health rehabilitation center

- Activity 5.2.4.2 Manufacture of cements *

- Activity 5.4.10 Coil center

Activity 8.3.3 Co-working space

- Activity 10.1.1 Trade and investment Support Office (TISO)

Activity 10.1.2 International Business Center (IBC)

- Activity 10.1.3 International Procurement Office (IPO)

*For Activity 5.2.4.2, applications can be submitted in upgrading machinery to mitigate the environmental impacts to reduce greenhouse gas emission only.

Incentives

1. Exemption of machinery import duties

2. 3-year corporate income tax exemption with a cap 50 percent of the investment capital (excluding cost of land and working capital on the enhancement). In this regard, the corporate income tax exemption of the revenue derived from the existing projects shall be granted.

3. The corporate income tax exemption period shall be started from the date of revenue derivation after the promotion certificate is issued and the operation start-up must be completed within 3 years as from the issuance date of the promotion certificate.

1.5 Measure to improve the efficiency of upgrading production line to acquire international sustainability certification

The applicants must submit an investment plan on raising the quality for international sustainability for example, Good Agriculture Practices (GAP), Forest Stewardship Council (FSC), Program for the Endorsement of Forest Certification Scheme (PEFCs), Food Safety Management System

Incentives

1. Exemption of machinery import duties

2. 3-year corporate income tax exemption with a cap 100 percent of the investment capital (excluding cost of land and working capital on the enhancement). In this regard, the corporate income tax exemption of the revenue derived from the existing projects shall be granted.

3. The corporate income tax exemption period shall be started from the date of revenue derivation after the promotion certificate is issued and the operation start-up must be completed within 3 years as from the issuance date of the promotion certificate.

2. Efficiency Enhancement measures for Group B’s New Investment Projects that Apply for Investment Promotion

The measures apply to: Group B new investment projects in activities eligible for investment promotion by BOI announcement effective at the time of application submission, except for activities that are not eligible for investment promotion under this measure as follows:

- Activity 2.2.2.2 Health rehabilitation center

- Activity 3.6 Manufacture of general automobile

- Activity 3.7 Manufacture of motorcycles (except less than 248 cc engine displacement)

- Activity 3.8 Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms (Only Plug-In hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV))

- Activity 5.2.4.2 Manufacture of cements

- Activity 5.4.10 Coil center

- Activity 8.3.3 Co-working space

- Activity 10.1.1 Trade and investment Support Office (TISO)

- Activity 10.1.2 International Business Center (IBC)

- Activity 10.1.3 International Procurement Office (IPO)

Automation and Robotics

Industry 4.0

2.1 Efficiency Enhancement measure by Adoption of Automation and Robotics in Manufacturing or Services

The applicant must submit an investment plan in automation or robotics systems to support the manufacturing or servicing processes in the project.

Counting of Investment Value according to Efficiency Enhancement measure by Adoption of Automation and Robotics in Manufacturing or Services

1. Investments or expenditures on machinery and equipment

2. Investments or expenditures on software, programs or information technology, renting/using cloud services or data centers

2.1 The investments or expenditures on software, program, or information technology integrated with machinery or equipment to control, oversee or support the manufacturing process.

2.2 Investments or expenditures on utilization of Artificial Intelligence (AI), machine learning or utilization of big data and data analytics

2.3 Investments or expenditures on software, program, or information technology systems for enterprise management:

• For software, program or information technology systems which are developed by domestic developers, certified by related agencies approved by the BOI

• For software, program or information technology systems which are not developed by domestic developers, who are certified by related agencies approved by the BOI, or are developed by foreign developers.

2.4 Expenditures on renting/using of cloud services or data centers

• In Thailand

• Overseas

Incentives

1. Projects utilizing automation or robotics systems to support their manufacturing or servicing processes are eligible for a 3-year corporate income tax exemption at 50% of their investment, excluding the cost of land and working capital.

2. Projects using machinery with linkages to or support domestic automation systems for at least 30% of the value of their automation or robotics systems are eligible for a 3-year corporate income tax exemption at 100% of their investment, excluding the cost of land and working capital.

2.2 Efficiency Enhancement Measure for Industry 4.0 Transformation

The applicant must submit an investment plan for efficiency enhancement to achieve Industry 4.0 transformation, as approved by the National Science and Technology Development Agency (NSTDA). The project must be implemented following the approved plans. Only investments in digital machinery and technology will be counted as efficiency enhancement for Industry 4.0 transformation according to the prescribed criteria in production and enterprise processes including implementations of:

- Automation and Network Technology

- Data Analytics and Smart Operation

- Digital technology adoption

Counting of Investment Value according to Efficiency Enhancement Measure for Industry 4.0 Transformation

Investments/Expenditures

1. Investments or expenditures on machinery and equipment

2. Investments or expenditures on software, programs or information technology, renting/using cloud services or data centers

2.1 The investments or expenditures on software, program, or information technology integrated with machinery or equipment to control, oversee or support the manufacturing process.

2.2 Investments or expenditures on utilization of Artificial Intelligence (AI), machine learning or utilization of big data and data analytics

2.3 Investments or expenditures on software, program, or information technology systems for enterprise management:

• For software, program or information technology systems which are developed by domestic developers, certified by related agencies approved by the BOI

• For software, program or information technology systems which are not developed by domestic developers, who are certified by related agencies approved by the BOI, or are developed by foreign develop

2.4 Expenditures on renting/using of cloud services or data centers

• In Thailand

• Overseas

Incentives

A 3-year Corporate Income tax exemption at 100% of investment excluding the cost of land and working capital in the efficiency enhancement for Industry 4.0 transformation.

Related Announcement

- Announcement of the Board of Investment No.15/2565: Measure for Industrial Upgrades towards Smart and Sustainable Industry date December 8, 2022.

- Announcement of the Office of the Board of Investment No. Por. 4/2565: Activities Not Eligible for Rights and Benefits According to the Announcement of the Board of Investment Announcement No. 11/2565, 12/2565, 13/2565, 14/2565, 15/2565 and 17/2565 date December 16, 2022.

- Relevant explanations from the office of the Board of Investment.

Investment Promotion Measures for Community and Society Development

In order to encourage business operators to participate in local community and society development by collaborating with local organizations to enhance the competitiveness. And to improve the quality of life for grassroot economy and society. Interested parties may apply for investment promotion under this measure with the following information:

Case 1: Non-BOI-Promoted Projects:

• Operating in the eligible activities for the promotion

• Having never been promoted or promoted but with no CIT incentives; or the incentives have been expired

3-year CIT Exemption with a cap of 200% of the Support Amount

Case 2: BOI-promoted Projects

• CIT incentives have not been expired or a new project entitled for CIT exemption

Increased CIT Exemption with a cap of 200% of the Support Amount

Total Project Investment > 5 Million Baht and > 500,000 Baht per Supported Party

Types of Support Expenses

- Cost of Plant Construction

- Cost of Machinery and Equipment

- Cost of Training

- Other Expenses Approved by BOI

Projects must be completed within 3 years from the date of investment promotion certificate issuance or of application for project amendments, and must not exceed the CIT exemption period.

A supported local organization*

Agriculture and Water Systems Local

Education, Public Health, and Environment

*A supported local organization means a local cooperative, community or social enterprise, registered with the relevant authority or local government organizations, and operating at least one activity in the prescribed scope, namely agricultural activities, holistic water resource management, local community products, community tourism, environmental enhancement activities, educational activities, public health activities, and also include supporting of local communities which collaborate with government-owned research institution or public educational institution.

Case I Case II

Applicants

Qualifications

2. Existing activities in operation, whether BOI-promoted or not, must be eligible for investment promotion at the time of the application submission.

3. Existing BOI-promoted activities may apply under this measure upon the expiration of the corporate income tax exemption or if the projects have not been granted corporate income tax exemption.

1. BOI-promoted projects and corporate income tax benefits have not expired. The projects must be eligible activities for investment promotion at the time of the application submission.

2. New investment projects meeting the scope of eligible activities for corporate income tax exemption (Activities in Group A)

Conditions

1. The projects must have minimum investment capital for supporting local organizations of 5 million baht (excluding the cost of land and working capital) and must support local organizations at least 500,000 Baht per entity.

2. The projects must submit a collaboration plan with the local organizations indicating the benefits that the local communities will receive from the projects in one or more of the following activities:

1) Competitiveness enhancement in manufacturing or servicing

2) Holistic management of water resources

3) Sustainable agriculture development

4) Environmental enhancement

5) Education enhancement

6) Public health enhancement.

Incentives

The applicants may support local organizations directly or through collaborations with public research or educational institutes.

3. The project implementation must be completed within 3 years from the date of investment certificate issuance or the approval date of project amendment.

1. A 3-year corporate tax exemption at 200% of the support fund* (excluding the cost of land and working capital) for existing activities in operation.

2. The corporate income tax exemption period shall be counted from the date of revenue derivation after the date of investment promotion certificate issuance.

3. Other non-tax incentives.

Corporate income tax exemption at 200% of the support fund (excluding the cost of land and working capital)

* For example, the list of investments in supporting local organizations are as follows:

The support

In the case of supporting competitiveness enhancement in production or service processes.

In the case of supporting holistic water resource management.

In the case of supporting the development of sustainable agriculture

The list of counting investment values to the corporate income tax exemption

Relevant expenses shall include costs of factory construction, machinery and equipment and training, etc.

Relevant expenses shall include costs of supporting digging wells to store water, costs of construction and repair of dams, costs of drilling, repair and maintenance/cleaning of groundwater wells, etc.

Relevant expenses shall include costs of machinery and equipment; costs of training on modern agricultural technology to reduce greenhouse gas emissions and production optimization technology for sustainable development; costs related to using technology in land management, such as surface soil adjustment, management of straw and stubble, harvesting, soil and water analysis, and uses of chemicals in the production process correctly and safely; costs of rice quality inspection and certification; costs of monitoring and assessing the performance of greenhouse gas emissions, etc.

In the case of supporting environmental enhancement

In the case of supporting public health

Relevant expenses shall include cost of waste sorting tools or equipment in the community, etc.

Relevant expenses shall include cost of medical tools and equipment, construction or renovation of exam rooms or patient rooms, etc. Nevertheless, the relevant expenses must not be an expense used to claim right and benefits from other government agencies.

In the case of supporting government-owned educational institution.

Relevant expenses shall include costs of construction or renovation of classroom, laboratory, supporting tools and equipment for educational institutions, etc. Nevertheless, the relevant expenses must not be an expense used to claim right and benefits from other government agencies.

Investment Promotion Measure in the Southern Border Provinces and Investment Promotion Measure in Model City Project in the Southern Border Provinces

The measures aim at supporting investment in the southern border provinces, leading to the growth of employment, prosperity, incomes, and enhanced quality of life, and driving the development of the economy and society to reinforce stability in the region. The measures focus on creating driving forces to sustain investment in model city projects in the southern border provinces. Interested parties can review the following detailed information on the measures:

4 Districts in Songkhla Province

Model City Projects

Southern Border Provinces

Model Cities in Southern Border Provinces refer to

Investment Promotion Measure in the Southern Border Provinces

Investment Promotion Measure in Model City Project in the Southern Border Provinces

1. Area Southern Border Provinces refer to

1. Narathiwat

2. Pattani

3. Yala

4. Satun

5. Four districts in Songkhla, namely Chana District, Na Thawi District, Saba Yoi District and Thepha District

1. Nong Chik District, Pattan

2. Betong District, Yala

3. Su-ngai Kolok, Narathiwat

4. Chana District, Songkhla

Satun

Songkhla

Chana

Na Thawi Chana Thepha Saba Yoi

Nong Chik

Su-ngai Kolok

Betong

Pattani

Yala Narathiwat

2. Activities Eligible for Investment Promotion

Investment Promotion Measure in the Southern Border Provinces

Investment Promotion Measure in Model City Project in the Southern Border Provinces

1. All activities according to the BOI Announcement No.9/2565: Measures to Promote Investment in Industries that are important to the Country's Development

2. Activities with relaxed conditions and additional activities that are promoted only in the southern border provinces.

2. Activities with relaxed conditions and additional activities that are promoted only in Model City Project.

3. Criteria and Conditions

Check the list of activities eligible for Investment promotion. Please see

Check the list of activities eligible for Investment promotion. Please see

General case nvestment in new projects only in the Southern Border Provinces or model cities Conditions

1. The minimum investment capital must not be less than 500,000 Baht (excluding cost of land and working capital).

2. Permission to utilize used domestic machinery in the promoted projects with a value not exceeding 10 million Baht with a requirement to invest in new machinery for at least one fourth of the value of the used machinery.

Special case

“Existing projects” can be located “inside” or “outside” the Southern Border Provinces or the model cities, but the projects must also have investment in a “new project” located in the area of the Southern Border Provinces or the model cities.

Investment Definition

Existing projects efer to all implemented projects, whether promoted or not. The projects can be located either in the Southern Border Provinces or in other areas but their activities must be eligible for investment promotion (must be in the list of eligible activities for investment promotion at the time of application submission.)

New projects refer to new investment projects applying for investment promotion in the Southern Border Provinces or the model cities. The applicants can be existing juridical persons, or new juridical persons of which the group of owners of the existing projects own all shares.

Conditions for Existing projects

1. The minimum capital investment must not be less than 500,000 Baht (excluding cost of land and working capital).

2. Applications for promotion of the existing projects must be submitted when the new projects have installed the machinery and are ready for full operation start-up.

Investment Promotion Measure in the Southern Border Provinces

Conditions for New projects

Investment Promotion Measure in Model City Project in the Southern Border Provinces

1. The minimum investment capital must not be less than 500,000 Baht (excluding cost of land and working capital).

2. Permission to utilize used domestic machinery in the promoted projects with a value not exceeding 10 million Baht with a requirement to invest in new machinery for at least one fourth of the value of the used machinery.

3. Applications for new projects must be submitted within the last working day of 2027 with confirmation letters on their existing investment.

In case of investment promotion for industrial estates or industrial zones, and projects located in industrial estates or industrial zones in the Southern Border Provinces:

Case 1: Investment in the first project in industrial estates or industrial zones, and in a project located in the BOI-promoted industrial estates or industrial zones in the Southern Border Provinces.

Conditions

(1) The minimum capital investment must not be less than 500,000 Baht (excluding cost of land and working capital).

(2) Permission to utilize used domestic machinery in the promoted projects with a value not exceeding 10 million Baht with a requirement to invest in new machinery for at least one fourth of the value of the used machinery.

Case 2: For investment in an expansion project. In case that a promoted investor operating the first project applies for a project expansion under its existing juristic person pursuant to the conditions as specified by the Board of Investment, the investor can combine the first investment project with the expansion project into one project.

Conditions

(1) The minimum investment capital of the expansion project (excluding cost of land and working capital) must not be less than 25 percent of the investment capital of the first project (excluding cost of land and working capital), and must have the minimum investment capital of no less than 500,000 Baht

Promotion Measure in the Southern Border Provinces

(2) Permission to utilize used domestic machinery in the promoted project with a value not exceeding 10 million Baht with a requirement to invest in new machinery for at least one fourth of the value of the used machinery.

(3) Must submit the application for promotion and start generating the revenue before the expiry date of corporate income tax exemption period of the first project.

(4) The applicant must be a promoted person who submitted its application for the first promoted project within the last working day of 2027.

Investment Promotion Measure in Model City Project in the Southern Border Provinces

Criteria and Conditions of Investment

1. General case

Investors who invest in new projects in the Southern Border Provinces or the Model Cities in the Southern Border Provinces.

2.Special case

Investors of existing projects who invest in new projects* in the Southern Border Provinces or the model cities in the Southern Border Provinces (whether the existing project is located in the Southern Border Provinces or not) can apply for incentives for both their existing projects and new projects.

* New projects refer to new investment projects applying for investment promotion in the Southern Border Provinces or the model cities. The applicants can be existing juridical persons, or new juridical persons of which the group of owners of the existing projects own all shares.

3. In case of investment promotion for industrial estates or industrial zones, and the project located in the BOI-promoted industrial estates or industrial zones in the Southern Border Provinces

Case 1: First investment project

Investors of industrial estates or industrial zones in the southern border provinces shall be granted the same incentives and follow the same conditions as those of general cases.

Case 2: Investment in expansion project

In case that a promoted investor operating its existing project applies for a project expansion under its existing juristic person pursuant to the conditions as specified by the Board of Investment, the investor can combine the first project with the expansion project into one project.

The Southern Border

Special Case: Example 1 Special Case: Example 2

4. Incentives

Investment Promotion Measure in the Southern Border Provinces

Investment Promotion Measure in Model City Project in the Southern Border Provinces

For new investment projects both in general case and special case

Exemption of import duties on machinery

Exemption of corporate income tax for a period of 8 years without corporate income tax cap

50 percent reduction of corporate income tax on net profit derived from the investment for a period of 5 years as from the date on which the corporate income tax exemption period expires

Double deductions on the costs of transportation, electricity and water supply for a period of 15 years as from the date of revenue derivation from the operation.

Double deductions on the costs of transportation, electricity and water supply for a period of 25 years as from the date of revenue derivation from the operation.

Deduction of the costs of installation or construction of facilities for 25 percent of investment capital in addition to deduction of normal depreciation

Exemption of import duties on raw and essential materials used in manufacturing for export for a period of 5 years.

90 percent reduction of import duties on raw and essential materials used in manufacturing for domestic sale for a period of 5 years.

Non-tax incentives

Exemption of import duties on raw and essential materials used in manufacturing for export for a period of 10 years.

90 percent reduction of import duties on raw and essential materials used in manufacturing for domestic sale for a period of 10 years.

For existing projects in special case

Exemption of corporate income tax for a period of 3 years with cap not exceeding 100 percent of the investment capital of the new investment projects in the Southern Border Provinces (excluding cost of land and working capital).

Non-tax incentives

Exemption of corporate income tax for a period o f 5 years with cap not exceeding 100 percent of the investment capital of the new investment projects in the Southern Border Provinces (excluding cost of land and working capital).

For investment projects in industrial estates or industrial zones and activities located in industrial estates or industrial zones in the Southern Border Provinces

First project investment and Investment in expansion project

The same incentives as new projects in general case and special case.

Related Announcement

- Announcement of the Board of Investment No.20/2565: Investment Promotion Measure in the Southern Border Provinces date December 8, 2022.

- Announcement of the Board of Investment No.21/2565: Investment Promotion Measure in Model City Project in the Southern Border Provinces date December 8, 2022.

Practice after being Investment Promotion

Foreign Technicians and Experts

Processes for Privileges Utilization

Amendment of Document Attached to Promotion Certificate

Amendment of document attached to promotion certificate will be completed 5 day after all required documents have been submitted.

Amendment field

1.1 Project specific conditions

(1) registered capital

(2) modification of shareholding structure

(3) product type/business size

(4) factory/business location

(5) increase/reduction in production capacity

(6) change in tax value

1.2 Others

(1) office location

(2) Company’s name

(3) Cancellation of Promotion Certificate

Required Document

1. Copy of approved letter from Investment Promotion Division 1- 4

2. Original promotion certificate

3. In case the project is conditioned under other special measures, evidences of compliance to such conditions must be attached.

Remark: In case of increase in foreign shareholding, documents showing the transfer of funds from overseas are required.

1. Covering letter from the company

2. Copy of certificate from the Office of the Company Limited and Partnership Registration.

3. Original promotion certificate

4. In case the project is conditioned, evidences of compliance to such conditions must be attached.

Contact Us

Head Offices

Office of The Board of Investment

555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900

Tel: +66 (0) 2553-8111

Website: www.boi.go.th

E-mail: head@boi.go.th

One Start One Stop Investment Center (OSOS)

One Stop Service Center for Visas and Work Permits

18th Floor, Chamchuri Square Building, Phayathai Road, Pathumwan, Bangkok 10330

Tel: +66 (0) 2209-1161-7

E-mail: visawork@boi.go.th

18th Floor, Chamchuri Square Building, Phayathai Road, Pathumwan, Bangkok 10330

Tel: +66 (0) 2209-1100

Website: osos.boi.go.th Email: osos@boi.go.th

Regional Offices

Regional Investment and Economic Center 1

Chiang Mai

Airport Business Park 108-110, 80 Mahidol Road, Hai Ya Subdistrict, Amphur Muang, Chiang Mai 50100

Tel: +66 (0) 5329 4100

Email: chmai@boi.go.th

Regional Investment and Economic Center 2

Nakhon Ratchasima

2112/22 Mitraphab Road, Amphur Muang, Nakhon Ratchasima 30000

Tel: +66 (0) 4438 4200 - 11

Email: korat@boi.go.th

Regional Investment and Economic Center 3

Khonkaen

177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000

Tel: +66 (0) 4327 1300-2

Email: khonkaen@boi.go.th

Regional Investment and Economic Center 4

Chonburi

46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road, Toongsukhla, Srira-cha, Chonburi 20230

Tel: +66 (0) 3840 4900

Email: chonburi@boi.go.th

Regional Investment and Economic Center 5

Songkhla

7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Songkhla 90110

Tel: +66 (0) 7458 4500

Email: songkhla@boi.go.th

Regional Investment and Economic Center 6

Surat Thani

49/21-22 Sriwichai Road, Makhamtia, Amphur Muang, Surat Thani 84000

Tel: +66 (0) 7740 4600

Email: surat@boi.go.th

Regional Investment and Economic Center 7

Phitsanulok

3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road, Naimuang, Amphur Muang, Phitsanulok 65000

Tel: +66 (0) 5524-8111

Email: phitsanulok@boi.go.th

Overseas Office

SHANGHAI

Thailand Board of Investment, Shanghai Office

Royal Thai Consulate-General, 2nd fl.,18 Wanshan Road, Changning District, Shanghai 200336 P.R. China

Tel: +86-21-5260-9876, +86-21-5260-9877

Fax: +86-21-5260-9873

Email: shanghai@boi.go.th

BEIJING

Thailand Board of Investment, Beijing Office Investment Promotion Section, Royal Thai Embassy, No.21, Guanghua Road, Chaoyang District, Beijing, 100600, P.R. China

Tel: +86-10-8531-8755 to 87, +86-10-8531-8753

Fax: +86-10-8531-8758

Email: beijing@boi.go.th

GUANGZHOU

Thailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, Guangzhou No.36 Youhe Road, Haizhu District, Guangzhou 510310 P.R. China

Tel: +86-20-8385-8988 Ext. 220-225, +86-20-8387-7770 (Direct line)

Fax: +86-20-8387-2700

Email: guangzhou@boi.go.th

TAIPEI

Thailand Board of Investment, Taipei Office

Taipei World Trade Center, 3rd Floor, Room 3E 39-40

No.5 Xin-Yi Road, Sec.5 Taipei 110, Taiwan R.O.C.

Tel: +886-2-2345-6663

Fax: +886-2-2345-9223

Email: taipei@boi.go.th

TOKYO

Thailand Board of Investment, Tokyo Office

Royal Thai Embassy, 8th Floor, Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan

Tel: +81 (0) 3-3582-1806

Email: tyo@boi.go.th

OSAKA

Thailand Board of Investment, Osaka Office

Royal Thai Consulate-General, Bangkok Bank Building, 7th Floor, 1-9-16

Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan

Tel: +81 (0) 6-6271-1395

Email: osaka@boi.go.th

SEOUL

Thailand Board of Investment, Seoul Office #1804, 18th Floor, Koryo Daeyeongak Center, 97 Toegye-ro, Jung-gu, Seoul, 100-706, Republic Korea

Tel: +82-2-319-9998

Email: seoul@boi.go.th

MUMBAI

Thailand Board of Investment, Mumbai Office Express Tower, 12th Floor, Barrister Rajni Patel Marg, Nariman Point, Mumbai, Maharashtra 400021

Tel: +91-22-2204-1589-90

Email: mumbai@boi.go.th

HANOI

Thailand Board of Investment, Hanoi Office

Royal Thai Embassy

26 Phan Boi Chau Street, Hoan Kiem District, Hanoi City, Viet Nam

Tel: +84 24 3823 5092-4

Email: hanoi@boi.go.th

JAKARTA

Thailand Board of Investment, Jakarta Office

Royal Thai Embassy

JI.DR.Ide Anak Agung Gde Agung Kav.E.3.3

No.3 (Lot 8.8) Kawasan Mega Kuningan

Jakarta 12950, Indonesia

Tel: +62 817 9800 203

Email: jkt@boi.go.th

NEW YORK

Thailand Board of Investment, New York Office

7 World Trade Center, 34th Floor, Suite F, 250 Greenwich Street, New York, New York 10007, U.S.A.

Tel: +1 (0) 212 422 9009

Email: nyc@boi.go.th

LOS ANGELES

Thailand Board of Investment, Los Angeles Office

Royal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A.

Tel: +1 (0)-323-960-1199

Email: boila@boi.go.th

FRANKFURT

Thailand Board of Investment, Frankfurt Office

Investment Section, Royal Thai Consulate-General

Liebfrauenberg 26, 60313 Frankfurt am Main, Federal Republic of Germany

Tel: +49 (069) 92 91 230

Email: fra@boi.go.th

PARIS

Thailand Board of Investment, Paris Office

Ambassade Royale de Thaïlande

8, Rue Greuze, 75116 Paris, France

Tel: +(33-1) 56 90 26 01

Email: par@boi.go.th

STOCKHOLM

Thailand Board of Investment, Stockholm Office

Östermalmstorg 1, 4th Floor, 114 42 Stockholm, Sweden

Tel: +46 8 5025 6558, +46 8 5025 6559

Email: stockholm@boi.go.th

SYDNEY

Thailand Board of Investment, Sydney Office

Suite 101, Level 1, 234 George Street, Sydney, New South Wales 2000, Australia

Tel: (+61-2) 9252-4884, (+61-2) 9252-4882

Email: sydney@boi.go.th